McKesson augments pharmacy offering with CoverMyMeds acquisition
SAN FRANCISCO — McKesson on Tuesday entered into an agreement to acquire CoverMyMeds for approximately $1.1 billion, the wholesaler announced Wednesday during its third-quarter conference call.
"CoverMyMeds mission is to help patients get access to the appropriate drugs for their care," John Hammergren, chairman and CEO McKesson, told investors Wednesday morning. "Their service automates and accelerates the prescription approval process known as electronic prior authorization, which is otherwise manual and time consuming," he said. "CoverMyMeds takes administrative cost out of the system which supports patients through drug adherence, manufacturers by reducing prescription abandonment and providers and payers through automation and appropriate patient access to medications."
CoverMyMeds products streamlines a prior authorization process for 47,000 pharmacies and 700,000 prescribers, Hammergren added, and the Company has partnered with McKesson’s RelayHealth Pharmacy business since 2010 to expand its reach and offer its capabilities to a broad customer base. "Together, CoverMyMeds and RelayHealth Pharmacy can develop even more innovative tools for manufacturers, pharmacies, patients, payers and prescribers and continue to take administrative costs and inefficiency out of the healthcare system."
The transaction is subject to customary closing conditions including approval and is expected to close in the first half of fiscal 2018, McKesson stated. The wholesaler expects the transaction will be funded by a mix of cash and debt.
McKesson reported revenues of $50.1 billion, up 5%, for the third quarter ended Dec. 31. On the basis of U.S. generally accepted accounting principles, third-quarter earnings per diluted share from continuing operations was $2.86, compared to $2.71 a year ago. North America pharmaceutical distribution and services revenues of $41.7 billion for the quarter were up 5% both on a reported and constant currency basis, primarily reflecting market growth and acquisitions, partially offset by branded to generic conversions.