IRVING, Texas--(BUSINESS WIRE)--McKesson Corporation (NYSE:MCK) today announced that it has signed a definitive agreement to acquire Rx Savings Solutions (RxSS), a prescription price transparency and benefit insight company that offers affordability and adherence solutions to health plans and employers, reaching more than 17 million current patients.
The transaction is valued up to $875 million, which includes a $600 million upfront payment and a maximum of $275 million of consideration contingent upon RxSS’ financial performance through calendar year 2025. The transaction is subject to customary closing conditions, including regulatory review, and is expected to close in the second half of Fiscal 2023.
“Rx Savings Solutions’ offerings for employers and patients will strengthen McKesson’s ability to help solve the most common medication challenges related to access, affordability and adherence,” said Brian Tyler, chief executive officer, McKesson. “We expect the acquisition of Rx Savings Solutions to accelerate McKesson’s growth priority in biopharma services by extending our ecosystem of differentiated medication access solutions to patients. Together with Rx Savings Solutions, McKesson will amplify our efforts to advance health outcomes for all.”
“This combination brings together two highly complementary organizations with closely aligned goals and values. By joining McKesson, we will be able to offer an exceptionally broad set of services to our clients and strengthen our leadership in prescription price transparency,” said Michael Rea, a clinical pharmacist who founded and currently leads Rx Savings Solutions. “This is a critical part of our growth journey, and we are excited about what the future holds for Rx Savings Solutions as part of McKesson.”
RxSS contracts directly with health plans and large self-funded employers to maximize the effectiveness of benefit design to drive prescription cost savings for members. The company uses an evidence-based, proprietary machine-learning algorithm to help members understand available options for therapy and identify cost-effective prescription alternatives under their insurance. If a prescription change would benefit the member, RxSS provides assistance to update the prescription. The company also provides ongoing medication reminders to help improve adherence.
Following the closing of the transaction, RxSS will become part of the company’s Prescription Technology Solutions business, which works across the healthcare delivery system to offer next-generation patient access, affordability and adherence solutions. The combined organization will endeavor to bring new capabilities for employers and patients to McKesson’s broad portfolio of pharmacy, provider, payer, and biopharma services. After initial integration, McKesson expects to use the combined medication access, affordability, and adherence services as a foundation to build new outcomes management programs for biopharma and payers, differentiated by their reach and efficacy at three touchpoints: provider office, pharmacy counter, and direct patient tools.
About McKesson Corporation
McKesson Corporation is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products, and services to help make quality care more accessible and affordable. Learn more about how McKesson is impacting virtually every aspect of healthcare at McKesson.com and read Our Stories.
About Rx Savings Solutions
Founded by pharmacist Michael Rea, Rx Savings Solutions helps members and payers reduce prescription drug costs through a combination of clinical technology, transparency, member engagement and concierge support. Currently 17 million members have access to personalized recommendations for lowering prescription costs and dedicated pharmacy experts to help navigate benefits, providers and pharmacies.
CAUTIONARY STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by their use of terminology such as “believes,” “expects,” “anticipates,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “projects,” “plans”,” estimates” or the negative of these words or other comparable terminology. The discussion of anticipated financial costs and results, operational benefits, and business growth related to the proposed acquisition may also include forward-looking statements. Readers should not place undue reliance on forward-looking statements, which speak only as of the date they are first made. Except to the extent required by law, we undertake no obligation to update or revise our forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, or implied. Although it is not possible to predict or identify all such risks and uncertainties, we encourage investors to read the risk factors described in our most recent annual and periodic report filed with the Securities and Exchange Commission. Risk factors related to the anticipated acquisition include, but are not limited to: we might be unable to complete the transaction in light of closing conditions such as regulatory approvals; there could be delays in the completion of the transaction; and we might not realize the financial and operational benefits that we expect from the transaction such as financial performance and business growth.
