SAN FRANCISCO–(BUSINESS WIRE)–McKesson Corporation (NYSE:MCK) today announced that it has signed a definitive agreement to purchase RxCrossroads, a provider of tailored services to pharmaceutical and biotechnology manufacturers, from CVS Health Corporation (NYSE:CVS).
The transaction is valued at $735 million, or approximately $635 million net of the present value of incremental cash tax benefits, and will be funded by cash on hand. The acquisition is expected to close in the fourth quarter of Fiscal 2018, subject to customary closing conditions, including necessary regulatory clearances.
This acquisition will enhance McKesson’s existing commercialization solutions for manufacturers of branded, specialty, generic and biosimilar drugs, including comprehensive patient support (“hub”) services, custom pharmacy solutions and third-party logistics, allowing McKesson to grow its end-to-end offerings for manufacturers. In addition, the acquisition will add plasma logistics to McKesson’s manufacturer services, complementing the company’s established customer-facing plasma offerings.
RxCrossroads’ focus on manufacturers and the patients they serve, including adherence support, and streamlining the process from product launch and through a course of therapy, aligns with McKesson’s approach to achieve better patient outcomes through efficiency and coordination across the supply chain, and throughout the patient journey.
“McKesson’s acquisition of RxCrossroads is another example of our continued focus on expanding and enhancing solutions for our biopharma manufacturer partners to deliver better patient support and better health outcomes,” said John Hammergren, chairman and chief executive officer, McKesson Corporation. “This investment will strengthen our existing best-in-class solutions, including hub services and patient assistance programs, while establishing new logistics services to plasma manufacturers, which allows us to serve biopharma companies of all sizes and throughout the product life cycle.”
Following the close of the transaction, RxCrossroads will become part of the company’s McKesson Specialty Health business. McKesson expects the impact of this transaction to be approximately 20 cents accretive to adjusted earnings per diluted share by the third year following the close of the transaction.
About McKesson Corporation
McKesson Corporation, currently ranked 5th on the FORTUNE 500, is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology. McKesson partners with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare to help provide the right medicines, medical products and healthcare services to the right patients at the right time, safely and cost-effectively. United by our ICARE shared principles, our employees work every day to innovate and deliver opportunities that make our customers and partners more successful — all for the better health of patients. McKesson has been named the “Most Admired Company” in the healthcare wholesaler category by FORTUNE, a “Best Place to Work” by the Human Rights Campaign Foundation, and a top military-friendly company by Military Friendly. For more information, visit www.mckesson.com.
RxCrossroads provides hub service programs encompassing reimbursement support, integration with network pharmacies, patient adherence programs, specialty logistics services, sales operations support and mail-order pharmacy services to pharmaceutical, biotechnology and medical device manufacturers. Through its complement of capabilities, RxCrossroads’ solutions incorporate high-touch services that provide a consistent patient, prescriber and client experience. RxCrossroads information technology platform integrates information that provides a complete picture for service program analysis. For more information, visit www.rxcrossroads.com.
McKesson separately reports financial results on the basis of Adjusted Earnings. Adjusted Earnings is a non-GAAP financial measure defined as GAAP income from continuing operations, excluding amortization of acquisition-related intangible assets, acquisition-related expenses and adjustments, Last-In-First-Out (“LIFO”) inventory-related adjustments, gains from antitrust legal settlements, restructuring charges, and other adjustments.