Medco Health Solutions hopes that what's good for diabetes patients is also good for its bottom line [1]. The company has agreed to pay $1.5 billion to acquire PolyMedica, the nation's largest supplier of blood-glucose testing supplies and other diabetes-related services.
The two companies already have been working together; Medco fills some 50,000 scrips a week for PolyMedica patients, and Polymedica has offered testing supplies and Medicare Part B management services to some Medco clients. The companies say the deal creates "the nation's most advanced large-scale practice focused on diabetes care."
Medco will pay $53 per share for PolyMedica, which closed Monday at $45.29. Together, the two companies will serve some 3.8 million diabetes patients.
- read the CNN report [2] on the deal
Related Articles:
Diabetes epidemic triggers soaring drug market. Report [1]
Medco reaches settlement with DOJ. Report [3]
Medco to launch e-prescribing study with CMS. Report [4]
Links:
[1] http://www.fiercebiotech.com/story/diabetes-epidemic-triggers-soaring-drug-market/2006-06-22
[2] http://money.cnn.com/news/newsfeeds/articles/djf500/200708280712DOWJONESDJONLINE000166_FORTUNE5.htm
[3] http://www.fiercehealthcare.com/story/medco-reaches-settlement-with-doj/2006-05-08
[4] http://www.fiercehealthcare.com/story/medco-to-launch-e-prescribing-study-with-cms/2005-10-28