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Express Scripts Inc. is expected to remain financially healthy, despite losing a $14.6 million annual cash payment from online drugstore PlanetRx.com Inc.
The payment was discontinued, and Express Scripts said it would take a $90 million non cash write-off in the second-quarter, after the -pharmacy benefits management firm restructures an agreement with PlanetRx.com Inc. The restructuring is to be effective July 5.
The agreement was hammered out in October 1999, when Express Scripts sold its online operation, yourpharmacy.com., to PlanetRx, which is based in San Francisco. Express Scripts' main business is running prescription operations for large employers and HMOs.
When, the PlanetRx deal was announced, analysts estimated it would mean up to $700 million over five years for Express Scripts.
Since then, the fortunes of PlanetRx and other online drugstores have plummeted. Its stock price fell from $16 a share when the deal was announced to $2 on June 19, the day...