Magazine article Drug Topics

Rite Aid Buys PBM EnvisionRx for $2 Billion

Magazine article Drug Topics

Rite Aid Buys PBM EnvisionRx for $2 Billion

Article excerpt

In a move widely seen as an opportunity for better competition with the other major drugstore chains, on Feb. 11 Rite Aid Corp. announced an agreement to buy the pharmacy benefits manager (PBM) EnvisionRx for about $2 billion.

Rite Aid will pay the investment firm TPG about $18 billion in cash and $200 million in stock for the PBM. EnvisionRx provides pharmacy specialty pharmacy and mailorder services, and is expected to produce about $5 billion in revenues this year.

A "compelling pharmacy offering"

"The acquisition of EnvisionRx meaningfully expands our health and wellness offerings, enhancing our ability to provide a higher level of care to the patients and communities we serve," said John Standley, Rite Aid's chairman and CEO.

"With the addition of EnvisionRx, we will create a compelling pharmacy offering across retail, specialty, and mail-order channels, enabling us to deliver cost-effective solutions to employers and health plans while driving growth and creating long-term value for our shareholders."

Sharad Mansukani, chairman of EnvisionRx, added: "[Our] innovative business model has always set it apart from other PBMs, and as part of a recognized pharmacy leader, will now be well positioned for further success.... EnvisionRx has built a bestin-class company with tremendous potential, and as a groundbreaking PBM, it has a great future as part of Rite Aid."

EnvisionRx, headquartered in Twinsburg, Ohio, provides both transparent and traditional PBM offerings through its EnvisionRx and Mecfirak PBMs, respectively Its mailorder and specialty pharmacy services are operated through Orchard Pharmaceutical Services. …

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