CVS pays $1 billion for Medica, its second-largest pharmacy acquisition
CVS Health announced a $1.2 billion purchase of specialty pharmacy company Medica on Wednesday.
The acquisition, which also includes a $400 million share buyback program, is expected to be completed by the end of the year, according to CVS CEO Kenneth Frazier.
The company said the deal was valued at approximately $1,000 per share.
The deal includes Medica’s $200 million purchase of CVS Caremark Corp., the third-largest health care company in the United States, which was valued for $1 and $600 million, respectively, in January.
The transaction was completed by July 10, 2018.
In March, CVS announced it was buying an additional 1,000 pharmacy positions, bringing its total pharmacy acquisition total to 7,600.CVS said it would increase its pharmacy acquisitions, including buying the pharmacy company, Cephalon, for $100 million.
The buyback was intended to help the company get back on track.
Cephalons CEO Scott Ettner said the buyback helps CVS get back into the business of providing care, as it does to help provide healthcare.
“The acquisition of CepHals pharmacy is another example of our commitment to delivering high quality care at a low cost,” he said.
“This deal is the culmination of an all-inclusive strategy that will strengthen our position as a leader in the specialty pharmacy industry, which is at the forefront of innovation and reducing costs and improving access to care for our customers.”
The deal also includes Medics’ $500 million acquisition of the company that runs the U.S. Medicare Advantage program for Medicare Advantage plans, and Medics CEO Jeff Jain.
The combined company is valued at $1 million.
The combined company will provide CVS with a range of prescription medications, including painkillers, oral contraceptives, blood pressure medication and a range.