On Tuesday, Express Scripts notified that it is about to resolve its contract dispute with the biggest health insurers in the United States, WellPoint Inc. In addition, it claimed that the WellPoint has significantly increased the chances of lodging a lawsuit and expressed confidence that the companies have enough potential to settle their dispute.

In a statement, Express Scripts notified that the insurer’s giant is clashing with the implementation of some clause of the contract as well as certain operational matters believed to have an association with Express Scripts' performance. Sources close to the matter have confirmed that the contract went into effect on December 1, 2009 between both the companies.

On the other hand, a spokeswoman for WellPoint, Kristin Binns said that the conflict has a close association with the interpretation of certain financial contractual terms sited in the PBM agreement as well as a few operational matters linked to Express Scripts' performance there under.

It has been reported that Express Scripts is looking forward to buying its one of the competitors, Medco, for around $29 billion in order to create a US powerhouse in managing prescription drug benefits. Simultaneously, the shareholders of both the companies are scheduled to cast their votes later this month in order to make an opinion on deal approval.

Meanwhile, Express Scripts shares experienced a roll down of 2% and grabbed a lower position at $44.40 on Tuesday, whereas WellPoint stocks were observed to decline by 75 cents to $64.64.

“We think Express Scripts is well positioned, even in the absence of Walgreens. … Walgreens is already losing some scripts because of the contract dispute, so this increases pressure to get a deal done”, said an analyst at Edward Jones & Co. in Des Peres, Judson Clark, while commenting on the existing market situations.