By Lisa Kerner
Charlotte, N.C., Aug. 28 - Medco Health Solutions, Inc. agreed to acquire PolyMedica Corp. in an all-cash transaction valued at $53 per share, or $1.5 billion.
Both Medco's and PolyMedica's boards of directors have approved the transaction, which is expected to close in late 2007. A termination fee of $52.5 million is included in the agreement.
The two companies have collaborated since 2006, with Medco fulfilling some 50,000 prescriptions each week for PolyMedica's patients, while PolyMedica provides Medicare Part B administration services and supplies to certain Medco clients.
"PolyMedica has developed a deep expertise and focus in diabetes care and, through the Liberty brand, excels at attracting seniors to their high-value mail-order pharmacy," Medco chairman and chief executive officer David B. Snow, Jr., said in a company news release.
"We will continue to invest strategically in capabilities supporting our Therapeutic Resource Centers which deliver both clinical and financial benefits to our clients and members, and differentiate Medco in the marketplace."
PolyMedica CEO Patrick T. Ryan added, "After doubling our business in the past three years, this provides PolyMedica with the resources to take our service model to the next level."
Lazard and Sullivan & Cromwell LLP advised Medco. Deutsche Bank Securities Inc. and Weil, Gotshal & Manges LLP advised PolyMedica.
Medco is a Franklin Lakes, N.J., pharmacy benefits manager. The company manages more than $6.5 billion in drug spending related to its 2.8 million patients under treatment for diabetes.
PolyMedica provides blood glucose testing supplies and related services to people with diabetes. The company is based in Wakefield, Mass.
| Acquirer: | Medco Health Solutions, Inc.
|
| Target: | PolyMedica Corp.
|
| Transaction total: | $1.5 billion
|
| Price per share: | $53.00
|
| Termination fee: | $52.5 million
|
| Announcement date: | Aug. 28
|
| Expected closing: | Late 2007
|
| Stock price for target: | Nasdaq: PLMD: $45.29 on Aug. 27
|
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