Magellan Health, Inc. today announced an agreement to acquire 4D Pharmacy Management Systems, Inc., a privately held, full-service pharmacy-benefit manager that serves managed-care organizations, employers and government-sponsored benefit programs.
The acquisition will bring scale and capabilities to Magellan Rx Management, as well as add business in multiple growing markets.
“4D will increase Magellan’s PBM scale and provide the company with inroads in Medicare Part D, managed Medicaid, dual eligibles and exchanges,” Magellan Health chairman and CEO Barry Smith said. “With the capabilities that this acquisition brings, combined with our strong sales momentum, we are well-positioned to exceed our long-term growth objective of $2.5 billion of pharmacy revenue by 2018.”
4D will be purchased for a base of $55 million with an additional consideration of up to $30 million based upon future milestones, including up to $10 million for the attainment of certain growth targets in 4D’s dual-eligible membership and up to $20 million for the preservation of certain business in the next three years.
“4D is a great fit within Magellan’s larger pharmacy organization,” 4D CEO Gerald Borsand said. “It’s clear that both companies share a desire to bring their clinical expertise and innovation to the market, and together our capabilities will be leveraged, expanded and enhanced as we seek to grow the business.”