Catalyst Health Solutions Completes Acquisition of FutureScripts, IBC's PBM
Rockville, MD and Philadelphia, PA - September 13, 2010 - Catalyst Health Solutions, Inc., (NASDAQ:CHSI) and Independence Blue Cross (IBC) today announced the closing of Catalyst's acquisition of IBC's pharmacy benefit management subsidiaries, FutureScripts, LLC and FutureScripts Secure, LLC (FutureScripts).
Catalyst acquired FutureScripts for $225 million in cash, which includes the value of a future tax benefit for Catalyst based on the structure of the transaction. As previously announced, Catalyst will manage IBC's pharmacy benefits under the terms of a new 10-year PBM services agreement.
"We are looking forward to a collaborative, long-term relationship with IBC, and delivering integrated health solutions that improve care while lowering costs," stated David T. Blair, Chief Executive Officer of Catalyst.
"Catalyst and IBC have together developed an integration plan designed to ensure a smooth transition for members, group customers and associates," added Joseph A. Frick, president and CEO of Independence Blue Cross. "We believe this alliance with Catalyst will provide us with the ability to deliver unique, integrated health solutions and enhanced value to our members and our customers."
The transaction has received all required regulatory approvals. Catalyst funded the acquisition with cash. Jefferies & Company, Inc., served as financial advisor to Catalyst on the transaction and Cain Brothers & Company, LLC served as financial advisor to IBC.
About Catalyst Health Solutions, Inc.
Catalyst Health Solutions, Inc., the fourth largest publicly traded PBM in the U.S., is built on strong, innovative principles in the management of prescription drug benefits and provides an unbiased, client-centered philosophy resulting in industry-leading client retention rates. The Company's subsidiaries include Catalyst Rx, a full-service pharmacy benefit manager serving more than 8 million lives in the United States and Puerto Rico; HospiScript Services, LLC, one of the largest providers of pharmacy benefit management services to the hospice industry; and Immediate Pharmaceutical Services, Inc., a fully integrated prescription mail service facility in Avon Lake, Ohio. The Company's clients include self-insured employers, state and local governments, managed care organizations, unions, hospices, third-party administrators and individuals. Additional information about Catalyst Health Solutions can be found at www.chsi.com.
About Independence Blue Cross
Independence Blue Cross is a leading health insurer in southeastern Pennsylvania. Nationwide, Independence Blue Cross and its affiliates provide coverage to nearly 3.3 million people. For more than 70 years, Independence Blue Cross has offered high-quality health care coverage tailored to meet the changing needs of members, employers, and health care professionals. Independence Blue Cross' HMO and PPO health care plans have consistently received the highest ratings from the National Committee for Quality Assurance. Independence Blue Cross is an independent licensee of the Blue Cross and Blue Shield Association.
FutureScripts and FutureScripts Secure, independent pharmacy benefits management companies, headquartered in Philadelphia, Pennsylvania, help employers and health plans manage rising prescription drug costs without sacrificing quality coverage. FutureScripts has built a comprehensive national pharmacy network of more than 60,000 retail pharmacies, including independent pharmacies as well as all of the major pharmacy retail chains. FutureScripts has developed management tools to ensure access to appropriate prescription drugs, while developing programs and services designed to help members save time and money. FutureScripts Secure supports Medicare lines of business. Additional information about FutureScripts can be found at www.futurescripts.com
This press release may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties that might materially affect our results, particularly those risks referred to in our Annual Report on Form 10-K for the year ended December 31, 2009, under "Item 1A. Risk Factors." Readers are urged to carefully review and consider the various disclosures made in our Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission that attempt to advise interested parties of the risks and uncertainties that may affect our business. Catalyst Health Solutions, Inc., does not undertake any obligation to update forward-looking statements, whether as a result of new information, future events or other developments.