Cigna has raised its annual profit forecast after beating quarterly earnings estimates on growth in its pharmacy and specialty drug businesses.

Health Services Unit Growth

The company’s Evernorth Health Services unit, which includes the pharmacy benefit management unit and specialty pharmacy, saw a 6% rise in adjusted revenue to $61.47 billion in the second quarter.

Growth in the segment was partly boosted by higher use of specialty drugs for complex conditions such as cancer, multiple sclerosis, and rheumatoid arthritis.

Cigna has been reducing its exposure to government-backed health insurance businesses due to elevated medical costs, exiting Medicare Advantage last year and announcing it will stop offering plans under the Affordable Care Act at the end of 2026.

Instead, it has shifted focus toward its core traditional employer-sponsored healthcare business and its pharmacy benefits management unit.

The company’s medical loss ratio, or the percentage of premiums spent on medical care, stood at 84.5% for the quarter, higher than 83.2% last year.

Cigna raised its 2026 adjusted profit forecast by 10 cents to at least $30.45 per share.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.