Catalyst Health Solutions and SXC Health Solutions complete merger
PBM and HCIT provider SXC Health Solutions has completed its deal with Catalyst Health Solutions.
A proposed merger between Catalyst Health Solutions and SXC Health Solutions has been approved by an overwhelming majority of stockholders, with the combined companies now covering approximately 25 million members.
SXC Health Solutions provides pharmacy benefit management (PBM) and healthcare information technology (HCIT) services to the healthcare benefits management industry, and has expanded its operation by combining with Catalyst Health Solutions following a period of contract negotiation.
The transaction creates the fourth largest PBM by prescription volume and gives the two companies joint revenue of roughly $13 million (£8.2 million) anually.
Mark Thierer, SXC chairman and chief executive officer, said: "The combined company provides the leading alternative to the traditional approach of other PBMs through its purchasing power, coupled with a flexible, agile, client-centered delivery model."
He added that the new direction taken by the firms will offer "distinct advantages" to stakeholders.
Catalyst Health Solutions currently enjoys a client retention rate of roughly 98 per cent, indicating its success in the pharmaceutical market.
Posted by Edel Quinn
Source: SXC Health Solutions press release, July 2nd