Medco to Acquire Accredo for $2.2 Billion

Pharmaceutical benefit manager (PBM) Medco Health Solutions has agreed to acquire Accredo Health for $2.2 billion -- a deal that would create the nation's largest specialty pharmacy business, Medco has announced.

The combination of Medco and Accredo, a provider of specialty pharmacy services, would create a PBM with more than $4 billion in annual net revenues. Under the terms of the agreement, each outstanding Accredo share will be exchanged for $22 in cash and 0.49107 shares of Medco common stock. The transaction is expected to close in mid-2005, Medco said.

"We believe the addition of Accredo's specialty pharmacy expertise to Medco's leading pharmacy benefit model will [provide] significant benefits to our clients, members, shareholders and employees," said David Snow, Medco's chairman, president and CEO. Accredo's business model encompasses specialty drugs to treat hemophilia, immunodeficiency disorders, pulmonary arterial hypertension, respiratory syncytial virus and multiple sclerosis.