Catalyst Health Solutions & Independence Blue Cross Announce Agreement on Sale of Pharmacy Benefit Management Company FutureS...
August 04 2010 - 5:00PM
Business Wire
Catalyst Health Solutions, Inc., (NASDAQ:CHSI) and Independence
Blue Cross (IBC) announced today that they have entered into a
definitive agreement for Catalyst to acquire IBC’s pharmacy benefit
management subsidiaries, FutureScripts, LLC and FutureScripts
Secure, LLC (FutureScripts), for $225 million, which includes the
value of a future tax benefit for Catalyst based on the structure
of the transaction.
FutureScripts provides pharmacy benefit management (PBM)
services to approximately 1 million members and manages over 14
million prescriptions annually. Following the closing of the
FutureScripts acquisition, Catalyst will manage IBC’s pharmacy
benefits under the terms of a new 10-year contract.
“We are gaining a superb management team in FutureScripts and
our combined expertise and best-in-class solutions will provide
immediate value to our clients and members,” said David T. Blair,
Chief Executive Officer of Catalyst. “We look forward to
collaborating with IBC and delivering integrated health solutions
that improve care while lowering costs.”
“Catalyst will provide IBC access to additional pharmacy
management and contracting capabilities, as well as expanded sales
and marketing resources, enhancing our ability to bring value to
our customers,” stated Joseph A. Frick, president and CEO of
Independence Blue Cross. “Catalyst has an outstanding reputation
and is committed to transparency, service excellence, and a
locally-based approach to managing pharmacy benefits that
emphasizes integrated management of medical and pharmacy benefits
and allows for customized, lowest cost solutions.”
Under the terms of the agreements, Catalyst will maintain the
FutureScripts brand, retain FutureScripts’ staff, and provide IBC a
full complement of services, including: claims adjudication, member
services, network administration, formulary management and rebate
contracting, mail and specialty drug management, clinical services,
data reporting and analytics, as well as client service and sales
support.
The transaction is expected to close in 2010, subject to
customary closing conditions and at the expiration of the waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act. Cain
Brothers and Company, LLC, acted as IBC’s financial advisor in this
transaction.
Catalyst will discuss the transaction during its second quarter
investor call scheduled for August 5, 2010, at 10:00 a.m., Eastern
Time.
About Catalyst Health Solutions, Inc.
Catalyst Health Solutions, Inc., the fourth largest publicly
traded PBM in the U.S., is built on strong, innovative principles
in the management of prescription drug benefits and provides an
unbiased, client-centered philosophy resulting in industry-leading
client retention rates. The Company's subsidiaries include Catalyst
Rx, a full-service pharmacy benefit manager serving more than 7
million lives in the United States and Puerto Rico; HospiScript
Services, LLC, one of the largest providers of pharmacy benefit
management services to the hospice industry; and Immediate
Pharmaceutical Services, Inc., a fully integrated prescription mail
service facility in Avon Lake, Ohio. The Company's clients include
self-insured employers, state and local governments, managed care
organizations, unions, hospices, third-party administrators and
individuals. Additional information about Catalyst Health Solutions
can be found at www.chsi.com.
About Independence Blue Cross
Independence Blue Cross is a leading health insurer in
southeastern Pennsylvania. Nationwide, Independence Blue Cross and
its affiliates provide coverage to nearly 3.3 million people. For
more than 70 years, Independence Blue Cross has offered
high-quality health care coverage tailored to meet the changing
needs of members, employers, and health care professionals.
Independence Blue Cross' HMO and PPO health care plans have
consistently received the highest ratings from the National
Committee for Quality Assurance. Independence Blue Cross is an
independent licensee of the Blue Cross and Blue Shield Association.
Additional information about Independence Blue Cross can be found
at www.ibx.com.
About FutureScripts
FutureScripts and FutureScripts Secure, independent pharmacy
benefits management companies, headquartered in Philadelphia,
Pennsylvania, help employers and health plans manage rising
prescription drug costs without sacrificing quality coverage.
FutureScripts has built a comprehensive national pharmacy network
of more than 60,000 retail pharmacies, including independent
pharmacies as well as all of the major pharmacy retail chains.
FutureScripts has developed management tools to ensure access to
appropriate prescription drugs, while developing programs and
services designed to help members save time and money.
FutureScripts Secure supports Medicare lines of business.
Additional information about FutureScripts can be found at
www.futurescripts.com
This press release may contain “forward-looking statements” as
defined in the Private Securities Litigation Reform Act of 1995.
These statements involve a number of risks and uncertainties that
might materially affect our results, particularly those risks
referred to in our Annual Report on Form 10-K for the year ended
December 31, 2009, under “Item 1A. Risk Factors.” Readers are urged
to carefully review and consider the various disclosures made in
our Annual Report on Form 10-K and our other filings with the
Securities and Exchange Commission that attempt to advise
interested parties of the risks and uncertainties that may affect
our business. Catalyst Health Solutions, Inc., does not undertake
any obligation to update forward-looking statements, whether as a
result of new information, future events or other developments.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6386261&lang=en
Catalyst Health Solutions, (MM) (NASDAQ:CHSI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Catalyst Health Solutions, (MM) (NASDAQ:CHSI)
Historical Stock Chart
From Jul 2023 to Jul 2024