MCKESSON ACCELERATES SHIFT TO MANAGED CARE WITH PLANNED ACQUISITION OF CLINICAL PHARMACEUTICALS, INC.
SAN FRANCISCO, March 29 /PRNewswire/ -- In a move to expand its capabilities in managed health care services, McKesson Corp. announced today that it has agreed to acquire privately owned Clinical Pharmaceuticals, Inc. (CPI), a leader in the field of clinically based managed prescription drug benefit programs. CPI, headquartered in Nashville, operates through Clinical Pharmacy Advantage (CPA), based in Minneapolis. In announcing the acquisition, Alan Seelenfreund, McKesson's chairman and chief executive officer, said, "The combined skills of CPA and our PCS Health Systems unit will provide a full range of managed prescription benefit programs for health plan sponsors in all market segments. "The market for pharmaceutical benefits management is experiencing significant changes and greatly increased demand," Seelenfreund said, citing the rapid growth of PCS and CPA in the past six months. "Payers in both the private sector and government are moving from traditional indemnity to managed care programs to control rising costs and improve quality." CPA was founded in late 1990 by managed care and clinical pharmacy professionals with extensive experience in managed prescription program development and implementation. Steven Geringer, chairman and chief executive officer; Norrie Thomas, president and chief operating officer; David Teckman, chief marketing officer; and other senior staff members will remain with the organization. The company's client base includes a number of major insurers, health maintenance organizations (HMOs), preferred provider organizations (PPOs) and Blue Cross and Blue Shield organizations. "The capabilities of the combined entity should greatly strengthen our position in the growing managed care market," according to Robert C. Johnson, chairman and chief executive officer of PCS. "We expect managed care to gain added importance as the health care reform process moves ahead." Geringer of CPA said, "Most of the health care reform scenarios discussed to date include extension of pharmaceutical benefits to all individuals covered by private and public programs. These programs will require the cost and quality management capabilities offered by PCS and CPA. "When the professional activities conducted by pharmacists at the point-of-sale are combined with focused physician education and information-sharing, we have the optimum approach for delivering cost- effective, quality pharmaceutical care. Finally, in this mode, all the elements influencing pharmaceutical care and costs are working for the patient." Johnson added, "Consistent with the philosophy of PCS, CPA has implemented a clinically focused integrated program to improve the quality of pharmaceutical care through the introduction of clinically sound treatment guidelines, which we believe is the most effective way to manage health plan costs." The acquisition of CPA is for cash and while terms were not disclosed, Seelenfreund said it is expected to be non-dilutive to the company's earnings in the fiscal year starting April 1. The acquisition is subject to regulatory approval. McKesson Corp. is a leading provider of health care products and services. The company's Health Care Services segment includes McKesson Drug Co., the world's largest distributor of pharmaceuticals and other health care products, PCS and Medis Health Pharmaceutical Services, Canada's largest wholesale pharmaceutical distributor. The Health Care Services segment accounts for about 97 percent of the company's revenues and 80 percent of operating profit. McKesson's fiscal 1992 revenues exceeded $10 billion. -0- 3/29/93 /CONTACT: Marvin Krasnansky of McKesson, 602-391-4658 or Holly Donato of Colle & McVoy, 612-851-2639, for McKesson/
CO: McKesson Corp.; Clinical Pharmaceuticals, Inc. ST: California, Tennessee IN: MTC SU: TNM
AL -- MN007 -- 0613 03/29/93 14:47 EST
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|Date:||Mar 29, 1993|
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