SAN FRANCISCO — McKesson Corp. has agreed to buy RxCrossroads, a provider of tailored services to pharmaceutical and biotechnology manufacturers, from CVS Health.
The deal, expected to close early next year, is valued at $735 million, or about $635 million net of the present value of incremental cash tax benefits. It will be funded by cash on hand.
The purchase will enhance McKesson’s existing commercialization offerings for manufacturers of branded, specialty, generic and biosimilar drugs, including comprehensive patient support (“hub”) services, custom pharmacy solutions and third-party logistics, allowing it to add to its end-to-end offerings for manufacturers. In addition, the acquisition will add plasma logistics to McKesson’s manufacturer services, complementing its established customer-facing plasma offerings.
RxCrossroads’ focus on manufacturers and patients, including adherence support, and streamlining the process from product launch and through a course of therapy, aligns with McKesson’s approach to achieve better patient outcomes through efficiency and coordination across the supply chain, and throughout the patient journey.
“McKesson’s acquisition of RxCrossroads is another example of our continued focus on expanding and enhancing solutions for our biopharma manufacturer partners to deliver better patient support and better health outcomes,” said McKesson chairman and chief executive officer John Hammergren. “This investment will strengthen our existing best-in-class solutions, including hub services and patient assistance programs, while establishing new logistics services to plasma manufacturers, which allows us to serve biopharma companies of all sizes and throughout the product life cycle.”
RxCrossroads will become part of the McKesson Specialty Health business. McKesson expects the impact of the transaction to be around 20 cents, accretive to adjusted earnings per diluted share by the third year following the close.