Pharmacy benefits manager Express Scripts today said it has reached an agreement to buy specialty PBM and pharmacy services company CuraScript from private investors for $335 million in cash, beating out several other, unspecified suitors.
Express Scripts says that, pending regulatory approval, it expects to complete the purchase early next year.
The move will augment Express Scripts' product offerings in disease management and specialized drug therapy, the Maryland Heights, Mo.-based company says.
"They have a broad product offering of specialty drugs," says Express Scripts spokesperson David Myers. "Hopefully this will allow us to capture more of the market among our 50 million members for their specialty needs."
Parties involved in the deal are not disclosing how many patients Orlando, Fla.-based CuraScript provides services to, but they do say that CuraScript has satellite distribution facilities in California, Texas, New York, Nebraska and Pennsylvania and that the specialty PBM currently holds 175 managed care contracts. It also works with Medicare and with 30 state Medicaid programs, according to Express Scripts.
CuraScript is on an annual pace of $425 million in revenue and operating income of $21 million "based on the most recent month's results," Express Scripts says in a statement. It does not provide further details, though the Express Scripts says it expects the CuraScript numbers to grow by 35% next year.
Express Scripts is purchasing the specialty PBM from GTCR Golder Rauner, a private equity investment firm in Chicago. GTCR says it helped create CuraScript in 2000 by financing a $41.3 million management buyout of what was then called Coram Prescription Services.
GTCR Principal Ethan Budin says this "felt like the right time" to sell CuraScript.
"Our view was that CuraScript has done very well," Budin says. "There was a lot of interest from many players throughout the industry."
Budin does not say which other companies had taken a look at CuraScript.