Allscripts-Misys Healthcare Solutions, Chicago, announced it has signed an agreement to sell its unit that provides in-office pharmacy services for physicians to A-S Medication Solutions. As part of the sale, Allscripts-Misys also entered a marketing agreement with A-S Medication Solutions, which is based in Libertyville, Ill., the old home town of Allscripts.
According to its filings with the Securities and Exchange Commission, Allscripts will receive an initial cash payment of $8 million due in its fiscal fourth quarter. That ends May 31, according to Allscripts. The deal is expected to close by then, according to a news release.
Under the five-year marketing agreement, Allscripts stands to be paid an additional $18 million, the SEC filing says, via an annual fee of $3.8 million. In addition, Allscripts will be paid a commission of 8% on new sales generated under the marketing agreement. The annual fee may be reduced by $1.2 million a year if pharmacy regulations in the 10 states where the company does the most business are changed to negatively affect the companys business. The annual fee also survives the termination of the marketing agreement unless the marketing agreement is terminated as a result of Allscripts' material breach of the marketing agreement.