SXC Health buys pharmacy provider MedfusionRx

By Associated Press
Posted Dec. 2, 2010 at 10:17 a.m.

Lisle-based pharmacy benefit management firm SXC Health Solutions Corp. said Thursday it has agreed to buy specialty pharmacy provider MedfusionRx LLC for US$100 million.

SXC Health, which trades its shares on the Toronto Stock Exchange, said the acquisition will immediately boost its earnings per share.

Privately held MedfusionRx of Birmingham, Ala., provides clinical services to more than 9,000 patients with complex chronic conditions.

The prospective deal includes conditions for post-closing adjustments, with an additional $5.5 million subject to hitting performance targets through 2012.

“This acquisition will expand our presence and enhance our capabilities in the specialty pharmacy market which differentiates us from our peers in the mid-market pharmacy benefit management sector,” president and CEO Mark Thierer said in a statement.

“Acquiring MedfusionRx increases the size of our specialty operations to approximately $400 million and allows us to better assist our clients and their members in managing complex conditions, such as cancer, with the most supportive and cost-effective care.”

MedfusionRx manages about $270 million worth of annual drug spending and it pre-tax earnings amounted to about $11.5 million over the past 12 months. SXC said it believes it can achieve cost savings of about $4 million to $6 million through the acquisition within 18 to 24 months.

Shares in SXC were up $2.77 or seven per cent at C$42.69 in morning trading on the Toronto Stock Exchange.


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