FRANKLIN LAKES, N.J. and DUSSELDORF, Germany, April 8, 2008 /PRNewswire-FirstCall/ -- Medco Health Solutions, Inc., (NYSE: MHS), which developed and manages the world's largest and most advanced pharmacies, today announced it has acquired a majority interest in Europa Apotheek Venlo, a privately held company providing clinical health care and mail-order pharmacy services in Germany.
Founded in 2001, Europa Apotheek is one of Europe's leading mail-order pharmacies, serving the Dutch and German health care markets from its operations, which are based in the Netherlands.
Germany is Europe's fastest-growing market for pharmacy health care services, with $35 billion in annual spending, growing at a rate of 5 percent per year. Mail-order pharmacy services are expected to reach $3 billion by 2012, as consumers and payors with increasing frequency embrace the convenience, safety and cost savings provided through mail-order.
Europa Apotheek specializes in treating patients with chronic diseases, such as diabetes, heart disease, arthritis, multiple sclerosis and HIV. Europa Apotheek also provides a centralized dispensing-by-mail service through drop-off locations in Drogerie Markt stores, Germany's second largest drug store chain - a distribution model consistent with Medco's central-fill service, originally pioneered in the United States.
Under the transaction, which is subject to regulatory review in Germany, Medco acquired a majority equity interest in Europa Apotheek for approximately $120 million, with additional future consideration for achieving performance targets.
"With shared values focused on improving clinical care and patient safety, Europa Apotheek and its management team will extend its leadership in helping to ensure that quality pharmacy care is increasingly affordable in one of the world's fastest-growing healthcare economies," said John Driscoll, Medco president for New Markets.
"German health care providers must achieve financial stability, and our innovative approach to pharmacy care is increasingly providing a more affordable solution. Our desire to deliver unmatched clinical excellence, dispensing accuracy and cost reduction is perfectly aligned with Medco's strengths, which will enhance our ability to serve our patients and accelerate our growth," said Klaus Gritschneder, Europa Apotheek board member.
Driscoll credited Europa Apotheek's executive leadership team for the company's rapid growth and continued success. He noted their commitment to improving clinical and financial outcomes for patients and payors is well-matched with Medco's.
"This is a logical extension of our international strategy - leveraging our proven proprietary technologies and, with best-of-breed-partners, delivering solutions to the challenges of managing health care costs and improving clinical care abroad," Driscoll said.
In addition to improving clinical quality, Medco's expertise in distribution, productivity, Six-Sigma process control and purchasing will help to create greater efficiencies for Europa Apotheek, improve patient safety and reduce costs in Germany's health care delivery system.
Medco Health Solutions, Inc., (NYSE: MHS) is the nation's leading pharmacy benefit manager based on its 2007 total net revenues of more than $44 billion. Medco's prescription drug benefit programs, covering one in five Americans, are designed to drive down the cost of pharmacy health care for private and public employers, health plans, labor unions and government agencies of all sizes, and for individuals served by the Medicare Part D Prescription Drug Program. Medco, the world's most advanced pharmacy(TM), is positioned to serve the unique needs of patients with chronic and complex conditions through its Medco Therapeutic Resource Centers(R); its diabetes pharmacy care practice, Liberty Medical; and its specialty pharmacy operation, Accredo Health Group, Inc. Medco is the highest-ranked independent pharmacy benefit manager on the 2007 Fortune 500 list. On the Net: http://www.medco.com.
This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward- looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the risks and uncertainties that affect our business, particularly those mentioned in the Risk Factors section of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.
|SOURCE Medco Health Solutions, Inc.|
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