McKesson Buys Rx Savings Solutions For $875M

McKesson Corp MCK has agreed to acquire Rx Savings Solutions (RxSS), a prescription price transparency and benefit insight company offering affordability and adherence solutions to health plans and employers, reaching more than 17 million current patients.
The transaction is valued at 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 2025.
The transaction is expected to close in the second half of FY23.
Also see: Credit Suisse Lifts Price Targets For Drug Distributors After Solid Q2 Performance.
"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," said Brian Tyler, McKesson's CEO.
RxSS contracts directly with health plans and large self-funded employers. 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.
Following the transaction's closing, RxSS will become part of the company's Prescription Technology Solutions business.
Price Action: MCK shares are down 0.35% at $345.05 on the last check Monday.
Photo Via Company