Express Scripts was heralded as a major coup for the University of Missouri-50度灰视频 when the still growing pharmacy benefits manager announced in September 2005 it would relocate its corporate headquarters from Maryland Heights to the north 50度灰视频 County campus.
The company, which agreed on Thursday to be acquired by Cigna for $67 billion, opened the $34 million headquarters just north of UMSL in mid-2007 and added several buildings, making it one of the most important economic drivers in that region.
Today, University Square, a community development corporation affiliated with the university, is marketing 30 acres near the UMSL campus to prospective developers, and Express Scripts remains a major part of the marketing proposal.
鈥淓xpress Scripts has been very important to that area, and they helped kick off a gigantic job boom and tremendous investment not only on (the UMSL) campus, but in NorthPark, too,鈥 said Betty Van Uum, chair of University Square, referring to the NorthPark industrial park developed by CRG, the development arm of Clayco. 鈥淚t would be enormously hard to underestimate their importance to this region.鈥
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For those reasons, University Square will be watching closely as the deal between Express Scripts and Cigna, which is expected to close by the end of the year, goes through the regulatory process.
鈥淲e don鈥檛 know enough information yet to determine how it might affect us,鈥 said Dick Shepard, executive director of University Square, who along with Van Uum helped lure Express Scripts to the UMSL campus in the early 2000s. 鈥淚t will be helpful if they end up in 10 years from now (adding) employees. It could be a big positive if you have more money behind the company now and it鈥檚 part of a larger corporation.鈥
The chance exists, too, that Cigna could remove Express Scripts jobs from 50度灰视频 鈥 Cigna officials said the combination will save $600 million due to administrative efficiencies, though no further detail was provided.
Express Scripts does not control any of the buildings it occupies in 50度灰视频, which are owned by a variety of real estate entities, including real estate investment trusts with massive portfolios nationwide.
According to Express Scripts鈥 latest annual report filed with the Securities and Exchange Commission, the company has leases with remaining terms of one to 11 years 鈥 the company notes most of its lease agreements include renewal options to extend the agreements from one to five years.
For the time being, University Square is moving forward with plans to attract a developer.
The 30 acres is owned by the university, Bi-State Development Agency and Geiger Real Estate. Shepard said the preference is to find a developer with plans to build a mixed-use concept that would include a hotel, office and apartments or condominiums.
Van Uum said the group has received a few proposals, but nothing is definitive. She doesn鈥檛 think the acquisition of Express Scripts will shake developer confidence in the area.
鈥淚t鈥檚 important but it鈥檚 not critical,鈥 she said. 鈥淚t鈥檚 truly important that the property is adjacent to the university and has tremendous access to transportation, such as the airport, a Metro stop and great highways.
鈥淢y first reaction (to the acquisition) was to be stressed, but we鈥檝e been reassured that Express Scripts will stay here,鈥 she said. 鈥淚f Express Scripts is happy with the deal, then we鈥檙e enthusiastic.鈥