It’s been a quiet 18 months for Express Scripts, since its $67 acquisition by Cigna Corporation (NYSE: CI) back in March 2018, but the company is back in the M&A market. Last week, the pharmacy benefits manager (PBM) announced it bought Verity Solutions from Ignitions Partners.
Verity provides 340B solutions to hundreds of integrated healthcare systems, acute-care hospitals, community health centers, and pharmacies. 340B is a federal program that requires drug manufacturers to provide outpatient drugs to eligible healthcare organizations and covered entities at significantly reduced prices.
Verity Solutions will operate as a standalone company under the Express umbrella, expanding the range of health services and improving the ability to help healthcare providers serve vulnerable patient populations.
According to our Deal Search Online database, there have been a few deals focused on the federal drug program solutions or pharmacies. In February 2018, CVS Health Corporation (NYSE: CVS) bought Central Drugs, a 340B contract specialty pharmacy serving chronic disease patients in Oregon. As part of a 2016 $75 million deal, Lincare sold Community Pharmacy Services, LLC to Premier Inc. (NASDAQ: PINC), which primarily provides pharmacy services under the 340B Federal program in the greater Philadelphia area.
Earlier that year, Wellpartner Inc. acquired SolutionsRx, a full-service 340B company focused primarily on community and rural access hospitals. It has relationships with more than 50 covered entities primarily in Missouri, Arkansas, and Illinois.
SolutionsRx provides traditional contract pharmacy services as well as a range of 340B consulting services to help clients navigate the complex regulatory environment. The acquisition boosted Wellpartner’s capability to fully integrate 340B solutions for covered entities and pharmacies by providing a one-stop-shop of 340B service.