Dynamic Healthcare M&A Database

Acquiring Party	Medco Health Solutions, Inc., a major pharmacy benefit manager.
Transferring Party	PolyMedica Corporation, a major provider of blood glucose testing supplies and related services for diabetics.
Sector	Medical Services
Date	August 28, 2007
Analysis Medco manages more than $6.5b in drug spending related to its 2.8m patients under diabetes treatment. The deal brings 1 million members under care and creates a one-stop shop to provide supplies needed to monitor diabetes (under the Liberty brand) and medications to control it. Under pressure to disclose and share rebates received from pharmaceutical companies, PBMs are seeking other revenue sources. Rival Caremark RX (now part of CVS Caremark) acquired Accordant Health Services, a manager of chronic diseases, and Express Scripts bought Priority Healthcare Corp, a distributor of specialized drugs for certain disease states. Deal value -- $1.5b, on TTM revenue of $710.2m (2.1x) and EBITDA of $110.5 (13.5x).
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Dynamic Healthcare M&A Database - 3Q07