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PBMs SXC, Catalyst wrap up merger
July 2nd, 2012
LISLE, Ill., and ROCKVILLE, Md. – Pharmacy benefit managers (PBMs) SXC Health Solutions Corp. and Catalyst Health Solutions Inc. have completed their $4.4 billion merger deal.
SXC and Catalyst said Monday that the closing of the agreement, announced in mid-April, forms the nation's fourth-largest PBM by prescription volume, with an annual prescription volume of more than 200 million adjusted PBM scripts. The merged company has combined annual revenue of about $13 billion and is expected to cover approximately 25 million members.
The merger became effective after SXC and Catalyst stockholders voted in favor of the deal on Monday.
Plans call for the merged company to have its headquarters in Lisle, Ill., where SXC is currently based, and to maintain a presence in Rockville, Md., where Catalyst has its headquarters.
Mark Thierer, chairman and chief executive officer of SXC, retains those roles for the combined company. Catalyst chairman and CEO David Blair is slated to provide ongoing support to the merged company to ensure a seamless integration, SXC and Catalyst said.
"The combination of SXC and Catalyst merges two highly successful, fast-growing enterprises to deliver the resources, skill and scale to solve the health care cost challenge," Thierer said in a statement. "The combined company provides the leading alternative to the traditional approach of other PBMs through its purchasing power, coupled with a flexible, agile, client-centered delivery model. Together, we are able to chart a new course to deliver distinct advantages to all stakeholders."
SXC also announced Monday that two new directors, Harry Kraemer and Steven Epstein are joining its board with the completion of the merger. Epstein's appointment will become effective in August. In addition, Curtis Thorne and Philip Reddon have resigned as SXC directors, effective immediately.
Ahead of the combined SXC-Catalyst in PBM market share by prescriptions are Express Scripts — which closed its blockbuster merger with Medco Health Solutions in April — followed by CVS Caremark and Argus Health Systems.