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news.US drug benefits manager Medco Health Solutions has struck a deal to acquire diabetes service provider PolyMedica in an all-cash transaction valued at $53 per share, or $1.5 billion.
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The companies believe the acquisition will create the US's premier provider of comprehensive diabetes care and treatment.
“We will continue to invest strategically in capabilities supporting our therapeutic resource centers – which deliver both clinical and financial benefits to our clients and members, and differentiate Medco in the marketplace,” said David Snow Jr., Medco chairman and CEO.
Medco currently manages more than $6.5 billion in drug spending related to its 2.8 million patients under treatment for diabetes. The PolyMedica acquisition brings 1 million members under care. Snow said Medco's shareholders will benefit from incremental earnings growth as a result of the transaction, which is expected to be slightly accretive in 2008.
PolyMedica will retain its patient engagement and service model, Liberty brand, culture and focus, while providing an integrated and complementary set of services in support of Medco's centers for diabetes care.
Medco and PolyMedica began collaborating in 2006. Currently, Medco fulfills more than 50,000 prescriptions per week for PolyMedica's patients.
The transaction has been unanimously approved by the boards of directors of both companies, and is subject to the approval of PolyMedica shareholders and other customary closing conditions. The transaction is expected to close late this year.