Prime Therapeutics announced Wednesday that Mostafa Kamal, the executive running a high-profile pharmacy business that Prime acquired last year, will succeed Ken Paulus as president and CEO of the Eagan-based company.
Prime Therapeutics names new CEO
Mostafa Kamal had continued as chief executive of the Magellan Rx business that Eagan-based Prime Therapeutics acquired last year for $1.35 billion.
July 5, 2023 at 3:43PM
Kamal continued as chief executive at Magellan Rx Management after Prime Therapeutics purchased the business in a $1.35 billion deal that was the company's first-ever acquisition. Magellan Rx manages specialty drugs for patients with complex health conditions and works with many state Medicaid programs.
Prime is owned by Blue Cross and Blue Shield of Minnesota and 18 other health insurers that use the Blue brand. With the acquisition last year, the pharmacy benefits manager (PBM) returned to operating its own mail-order pharmacies and specialty drug distribution facilities.
"Mostafa's vision for what we can become is inspiring and bold," Maurice Smith, Prime's board chairman who also is president, CEO and vice chair of Health Care Service Corporation, said in a statement. "As Prime seeks to reimagine pharmacy benefit management, he is the right person to build on the strong foundation Ken leaves as he retires."
Paulus was named CEO at Prime Therapeutics in April 2019. Previously, he was chief executive officer at Minneapolis-based Allina Health.
"I leave Prime in capable hands," Paulus said in a statement. "Leading this company for the past four years has been a true privilege."
Health insurers, state government agencies and employers hire PBMs to manage the pharmacy portion of their health plans. The companies negotiate prices with drug manufacturers and payments to pharmacies for dispensing medicines. PBMs also create drug "formularies" as well as networks of pharmacies where patients often have financial incentives to use certain medications and drugstores.
As CEO of Magellan Rx, Kamal led the company "through a period of significant growth, transformation and diversification," Prime Therapeutics said in a news release. Before becoming chief executive, Kamal held other leadership positions at Magellan Rx as well as Medco Health Solutions, which is now part of PBM giant Express Scripts.
Prime Therapeutics employs about 6,600 people, with about 2,200 residing in Minnesota.
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