McKesson has signed a definitive agreement to acquire Rx Savings Solutions, a prescription price transparency and benefit insight company that offers affordability and adherence solutions to health plans and employers.
The transaction is valued 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 calendar year 2025.
The transaction is expected to close in the second half of fiscal 2023.
“Rx Savings Solutions’ offerings for employers and patients will strengthen McKesson’s ability to help solve the most common medication challenges related to access, affordability and adherence,” said Brian Tyler, CEO of McKesson.
Tyler added, “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. Together with Rx Savings Solutions, McKesson will amplify our efforts to advance health outcomes for all.”
“This combination brings together two highly complementary organizations with closely aligned goals and values. By joining McKesson, we will be able to offer an exceptionally broad set of services to our clients and strengthen our leadership in prescription price transparency,” said Michael Rea, a clinical pharmacist who founded and leads Rx Savings Solutions. “This is a critical part of our growth journey, and we are excited about what the future holds for Rx Savings Solutions as part of McKesson.”
RxSS contracts directly with health plans and large self-funded employers to maximize the effectiveness of benefit design to drive prescription cost savings for members. 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. If a prescription change would benefit the member, RxSS provides assistance to update the prescription. The company also provides ongoing medication reminders to help improve adherence.
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Following the closing of the transaction, RxSS will become part of the company’s Prescription Technology Solutions business, which works across the healthcare delivery system to offer next-generation patient access, affordability and adherence solutions, the company said.
The combined organization hopes to bring new capabilities for employers and patients to McKesson’s broad portfolio of pharmacy, provider, payer and biopharma services. After initial integration, McKesson expects to use the combined medication access, affordability and adherence services as a foundation to build new outcomes management programs for biopharma and payers, differentiated by their reach and efficacy at three touchpoints: provider office, pharmacy counter and direct patient tools, the company said.