Caremark Rx is buying AdvancePCS for about $6 billion in
stock, cash, and debt. The merged company will have a market
value of about $13 billion and combined annual revenues of $23
billion, making the new company the second largest in terms of
revenue behind Medco, which had 2002 sales of $33 billion.
Medco was spun off from Merck & Co as an independent
company in August.
"Caremark Rx and AdvancePCS are a compelling strategic fit
with relatively little market overlap," said Mac Crawford,
chairman and chief executive officer of Caremark Rx.
"AdvancePCS has built a strong base of managed care customers
while Caremark Rx has focused on the employer
Management of both companies said they believe that the
transaction offers the opportunity to significantly enhance
the depth and breadth of the specialty pharmaceutical and
disease management services provided. The transaction will
combine specialty disease management services related to
primary pulmonary hypertension and Gaucher disease provided by
AdvancePCS with Caremark Rx's focus on chronic conditions such
as hemophilia, multiple sclerosis, hepatitis C, and rheumatoid
arthritis. The combination is also expected to enhance the
provision of mail-order services.
Drug Benefit Trends 15(9):18-22, 2003.
2003 Cliggott Publishing, Division of SCP Communications
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