Express Scripts Denied $43 Million in Tax Deductions (Correct)

Express Scripts Inc. isn’t entitled to $42.9 million in tax deductions, because its claims adjustment software doesn’t qualify for as domestic production activities, a federal judge in Missouri said Tuesday.

Judge Henry E. Autrey granted summary judgment to the US in its years-running dispute with the St. Louis-based pharmacy benefit management company. The agreements Express Scripts signs with its clients designate the software’s operation as a service, said Autrey, of the US District Court for the Eastern District of Missouri.

The software at issue helps sponsors of prescription drug plans to determine whether a drug prescribed to a member is ...