By Chelsey Dulaney
Catamaran Corp. has agreed to buy Healthcare Solutions Inc. in a
$405 million all-cash deal expected to boost the pharmacy-benefit
manager's presence in the workers' compensation market.
Meanwhile, Schaumburg, Ill.-based Catamaran posted
stronger-than-expected revenue and earnings growth in its December
quarter.
Pharmacy-benefit managers, or PBMs, process prescriptions for
the groups that pay for drugs, usually insurance companies or
corporations, and use their size to negotiate with drug makers and
pharmacies. They have put pressure on drugstores by negotiating for
lower prices on behalf of their clients and via mail-order plans
that compete for prescription business.
Earlier this month, Rite Aid Corp. agreed to buy
pharmacy-benefit manager Envision Pharmaceutical Services for about
$2 billion in a move that will better position the company to
compete with CVS Health Corp., which agreed to buy pharmacy-benefit
manager Caremark Rx Inc. in 2006 for $21 billion.
Overall, for the quarter ended Dec. 31, Catamaran reported a
profit of $100.5 million, or 48 cents a share, up from $74.4
million, or 36 cents a share, a year earlier.
Excluding amortization, per-share earnings improved to 67 cents
from 56 cents a year earlier.
Revenue climbed 26.7% to $5.74 billion.
Analysts polled by Thomson Reuters had forecast per-share
earnings of 61 cents on revenue of $5.57 billion.
Pharmacy benefit management revenue grew 26.9%, while health
care information technology revenue grew 13%.
For 2015, Catamaran forecast adjusted earnings of $2.45 to $2.60
a share and revenue of $23.5 to $24.5 billion
Analysts had been expecting $2.59 a share in earnings on $23.79
billion in revenue.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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