Medco Health Solutions is acquiring Accredo Health in a cash and stock transaction valued at about $2.2 billion.
The combination of Medco and Accredo creates the nation’s largest specialty pharmacy business, generating more than $4 billion in annual net revenues and complementing Medco’s industry-leading pharmacy practice.
“We believe the addition of Accredo’s specialty pharmacy expertise to Medco’s leading pharmacy benefit model will take the value we have already experienced from our current alliance with Accredo to the next level, providing significant benefits to our clients, members, shareholders and employees,” said David B. Snow Jr., Medco’s chairman, president and CEO. “Medco’s shareholders are expected to benefit from further top-line and bottom-line growth and the opportunities that lie ahead in this important growth market. Medco’s clients will be able to take advantage of a broad, integrated specialty service offering designed to better manage the cost of providing the highest quality of patient care in a critical health care category.
“Employees from both companies will also benefit from the expanded opportunity to be part of a larger enterprise with the resources and expertise to foster innovation and touch a larger universe of patients,” said Snow.
Added David D. Stevens, chairman and chief executive officer of Accredo: “The transaction unites two complementary best-of-class pharmacy operations and represents a unique opportunity to extend the adoption of Accredo’s specialty business in the marketplace. We believe manufacturers, physicians, payors and the valued patients we serve will realize considerable benefits from the combination of our offering with Medco’s sophisticated business model, overall scale and impressive client base.”
To maximize Accredo’s well-developed relationships, Medco intends to manage Accredo as an independent business, retaining its successful business model, brands, culture and focus. Medco is committed to preserving Accredo’s high-touch service model focused on excellence in patient care.
The new business will report to Kenny Klepper, Medco’s executive vice president and chief operating officer, with Stevens serving as CEO for the combined specialty business, which will unite Accredo’s strong management team with Medco’s specialty pharmacy leadership. “This combined team is broad and deep, with the proven operational and clinical expertise to drive specialty pharmacy to a new level of focus and innovation for the benefit of our clients and their membership,” said Klepper.
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