In a understanding that could assistance wring behind control over a mountainous cost of medication drugs, UnitedHealth Group UnitedHealth Group’s Optum Optum Rx Corp. will buy pharmacy advantage manager Catamaran Catamaran Corp. (CTRX) for $12.8 billion.
UnitedHealth Group (UNH), already a nation’s largest health word company, will turn a hulk among supposed PBMs, that are a pull between drug manufacturers and employers when it comes to purchasing pharmaceuticals. PBMs like Catamaran, a Caremark section of CVS Health (CVS) and Express Scripts Express Scripts (ESRX) are apropos some-more critical as biologic drugs take on a larger share of U.S. drug costs.
“The total classification will assistance business conduct a formidable costs and outcomes as this apportionment of a curative marketplace expands from an estimated $100 billion in revenues in 2014 to potentially $400 billion annually by 2020,” a two companies pronounced in a statement.
UnitedHealth will compensate $61.50 per share for Catamaran. The understanding is approaching to be accretive to UnitedHealth’s 2016 earnings.
The understanding comes during a time drug makers like Gilead Sciences Gilead Sciences (GILD) and Abbvie (ABBV) have only launched costly treatments for Hepatitis C that cost some-more than $1,000 a pill. Already, both companies have been negotiating disdainful deals with PBMs, that determine radically to yield their health devise members with coverage of one drug over a other. That brings a costs of a pills down.
A news progressing this month from Express Scripts blamed Hepatitis C pills as a pivotal reason because drug spending jumped 13% final year.
With Catamaran underneath UnitedHealth’s Optum umbrella, drug makers can design some-more disdainful deals from a PBM with larger poke and one of a nation’s longest lists of employer and supervision health devise clients. This year, Catamaran expects to fill some-more than 400 million prescriptions while OptumRx will fill 600 million.
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