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Medco Bulks Up On Specialty Pharmacy With Accredo Health Agreement

This article was originally published in The Pink Sheet Daily

Executive Summary

The PBM enters into a 10-year agreement with retail specialty pharmacy Accredo. The alliance will supplement Medco's Columbus, Ohio specialty pharmacy facility, which manages drug spend of approximately $1.8 bil. a year.

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The companies' combined specialty drug sales were about $4.3 bil. in 2004. The acquisition puts Medco in a position to take a large share of Medicare Part B drug business in addition to its stake in the Part D outpatient drug benefit.

Medco Creates Largest U.S. Specialty Pharmacy Through Accredo Acquisition

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The pharmacy benefit manager ended 2003 with $638.5 mil. in cash, which could be used to offer a Medicare Rx plan or to make an acquisition. Medco may create a long-term plan for the cash next year.

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