The large pharmacy benefit manager Express Scripts said it has signed a deal to sell its pharmaceutical support business, United BioSource Corp., to private equity firm Avista Capital Partners for an undisclosed amount.
United BioSource, known as UBC, partners with “life science companies to make medicine and medical products safer and more accessible.” Express Scripts wouldn’t say how much Avista is paying for the UBC unit, which is based in Blue Bell, Pa., or comment on the sale beyond a press release.
Express Scripts and its standalone business model are under pressure as rivals form closer ties with health insurers. Already, UnitedHealth Group has its OptumRx PBM under the larger insurer’s umbrella and rumors are swirling that CVS Health, which operates the large Caremark PBM, may buy or merge with Aetna, one of the nation’s largest health insurance companies.
UBC also has ties to Mallinckrodt, which sells the expensive Acthar, which is used to treat lupus and other diseases. Express Scripts also recently disclosed UBC has been hit with lawsuits alleging antitrust violations in how it helped drugmakers promote Acthar and other products, according to reports.
PBMs are middlemen between drug makers and consumers when it comes to purchasing drugs and providing prescription coverage. The PBM’s role is in part to leverage its negotiating clout to get the best drug prices on behalf of its diverse base of customers that include large employers as well as Medicare and Medicaid.
Given the rapidly changing industry dynamics, some observers believe Express Scripts will be forced to sell to a larger player, especially if the now month-old rumor of CVS Health merging with Aetna becomes a reality. United BioSource appears to be less important to Express Scripts’ pharmacy benefit management strategy as PBMs are looking for ways to rein in the rising costs of prescription drugs, making sure patients are getting the right medicines, in the right amount and at the right time.
United BioSource, which has 13 locations in the U.S., Europe, and Canada, said its “core strength is generating, analyzing, and communicating real-world evidence throughout a medical product’s lifecycle.” UBC president Patrick Lindsay said his “team of clinical and commercial experts understands the many facets of drug development, market access, and safety.”
“Avista’s commitment to the healthcare industry makes them the ideal partner as we continue to improve patient care,” Lindsay said. “Together, we will provide our clients, their patients, and their prescribers with innovative services that meet the demands of a dynamic industry.”
Avista healthcare industry executive Charles Harwood said United BioSource “has contributed unique capabilities and insights to the biopharmaceuticals industry, which have enabled countless pharmaceutical companies to accelerate approvals of their therapies, expand access to patients in need, and help ensure medications are safe to use.”
Date: Nov 27, 2017