A contract dispute between pharmacy benefits manager Express Scripts and its largest client, the health insurer WellPoint, should get resolved quickly but investors will likely overreact to the dustup, according to a Jefferies analyst.

Express Scripts, based in St. Louis, said Tuesday afternoon it was in the middle of a contract dispute with the Indianapolis insurer, and WellPoint has raised the possibility of litigation. But Express Scripts also said the companies are negotiating and it believes they can resolve the dispute.

WellPoint Inc. operates Blue Cross Blue Shield plans in 14 states and is the nation's largest health insurer based on membership. It also represents about 30 percent of Express Scripts' revenue, analyst Arthur I. Henderson said in a Wednesday morning research note.

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