Magellan Stock Dips As It Announces Loss Of Contract

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Magellan Health Services Inc. said in a federal filing Monday that one of its customers will end a contract at the end of 2013.

The customer was not named. The customer’s contract brought in $144.5 million in revenue to Magellan during the nine-month period ending Sept. 30.

Magellan, based in Avon, wrote in a filing with the U.S. Securities & Exchange Commission: “The customer has informed the company that, after a competitive evaluation process, it has decided not to renew its contract with the company and to contract with another behavioral health management vendor.”

Magellan declined to name the customer or offer any further details about the contract.

Magellan Health is a specialty insurer that sells coverage for behavioral, radiology and pharmaceutical benefits.

Shares of the company closed at $49.00, down $2.75 on Monday afternoon.

About Matthew Sturdevant

Full-time staff journalist at The Hartford Courant and magazine freelancer with a master's degree in writing from Dartmouth. My work has appeared in The Los Angeles Times, The Chicago Tribune, Taiwan News, The Baltimore Sun and many other news sources. My blog has been referenced by Politico.com, the Kaiser Family Foundation, the Georgetown Law Library and a number of organizations in healthcare and business. Sturdevant’s blog is "a well-written wealth of ideas," said The Donald W. Reynolds National Center for Business Journalism, (businessjournalism.org, May 18, 2011). I have experience writing for newspapers, magazines, Web sites and blogs as well as shooting and editing video. I made regular appearances on news-talk radio and on the NBC affiliate station in Corpus Christi, Texas. I made occasional appearances on the Fox affiliate in Connecticut promoting Hartford Courant articles.

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