Elevance Health will pay an undisclosed amount to acquire specialty pharmacy BioPlus, the company announced Wednesday.
The health insurer, which operates Blue Cross and Blue Shield plans in 14 states, will buy the company from CarepathRx, which provides pharmacy services to hospitals and is owned by Nautic Partners, a company private equity firm. Elevance plans to incorporate BioPlus’ specialty services into its IngenioRx pharmaceutical benefits manager.
“We are very focused on, as it relates to IngenioRx, selling additional products and services, so things like the cost reduction program, the special condition management program, and the compliance program. digital,” Elevance Health executive vice president Peter Haytaian told investors during the company’s third-quarter earnings call last month. The company, formerly known as Anthem, did not immediately respond to a request for an interview.
IngenioRx revenue grew 10.7% year-over-year to $7.2 billion in the quarter. PBM accounted for 18% of Elevance’s $39.6 billion in total revenue. More than 60% of the company’s revenue comes from its government health plan business.
Elevance Health expects the acquisition of BioPlus to close in the first half of next year. According to the company, the deal will not have a significant impact on adjusted earnings per share next year.
BioPlus provides pharmaceutical care for patients with chronic conditions such as cancer, multiple sclerosis, and hepatitis C, and operates Centers of Excellence that help cancer and multiple sclerosis patients receive medication and navigating treatments. Elevance Health plans to expand Centers of Excellence to new treatment areas.
Ultimately, the insurer aims to link BioPlus’ pharmaceutical services with its care delivery arm. If BioPlus’ team identifies a patient who could benefit from home care, for example, the company will refer them to Elevance providers.
