Medco Health Solutions Inc., the largest pharmacy benefits manager by revenue in the United States, has agreed to buy closely
held United BioSource Corp. for $730 million in an all-cash deal.
Medco operates an automated pharmacy and distribution center in Whitestown in Boone County, and it plans to employ more than 1,400 people there by 2012. The company studies drug data, genetic testing and medical-claims data at the facility.
The agreement is expected to be “slightly accretive” to Medco earnings in 2011, excluding one-time items and amortization, Franklin Lakes, N.J.-based Medco said in a statement today. United BioSource, based in Bethesda, Md., will have revenue of $280 million in 2010 and a growth rate exceeding 20 percent, the statement said.
United BioSource tests drugs and devices after they are approved by federal regulators for safety and effectiveness.
“To meet the three main objectives of national health-care reform—improving quality and reducing costs in order to extend access—it is more critical than ever to ensure that our use of medicines is driven by scientific evidence and proven economic value,” Dave Snow, Medco’s CEO, said in the statement. “UBC’s products and services broaden the Medco portfolio consistent with our core mission of making medicine smarter through the generation, translation and application of evidence.”