CoverMyMeds Purchased for $1.1 Billion
CoverMyMeds a privately-owned company headquartered in Columbus, Ohio, that provides electronic prior authorization solutions to pharmacies, providers, payers and pharmaceutical manufacturers, has been purchased by McKesson Corporation for $1.1 billion.
“I am pleased with our strong cash flow generation and our ability to deploy capital in meaningful and productive ways, particularly strategic acquisitions and share repurchases,” said John H. Hammergren, chairman and chief executive officer. “Our announced acquisition of CoverMyMeds supports McKesson’s commitment to provide a comprehensive set of services and solutions that drive value across the healthcare continuum and secure patients’ access to their prescribed drugs. McKesson continues to further enhance its diverse suite of pharmaceutical technology solutions to support the very best in patient care.”
CoverMyMeds posted a statement on their website concerning the deal:
“McKesson, which ranks 5th on the FORTUNE 500, is a healthcare services and information technology company dedicated to making the business of healthcare run better. McKesson partners with payers, hospitals, physician offices, pharmacies, pharmaceutical companies and others across the spectrum of care to improve their financial, operational, and clinical performance.
We started CoverMyMeds in 2008 with a mission to help patients get the medication they need to live healthy lives. Today, our products streamline the prior authorization (PA) process for 47,000 pharmacies, 700,000 prescribers and the nation’s largest pharmacy benefit managers (PBMs) and payers.”
The $1.1 Billion acquisition is the largest exit yet for a Columbus tech startup in history. There is buzz and speculation that this is a kind of “unicorn deal” that could unlock regional potential for similar deals from investors and entrepreneurs.
“Until the close of the transaction, McKesson and CoverMyMeds are separate, independent entities.
We’re excited for the future and our ability, now more than ever, to help patients get the medication they need to be well and for CoverMyMeds to be the best place to work in Ohio.” Jessica Behrendsen wrote on CoverMyMeds
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