Elevance Health will pay an undisclosed amount to acquire specialty pharmacy company BioPlus, Elevance Health announced Wednesday.
Elevance, which operates Blue Cross and Blue Shield plans in 14 states, will buy BioPlus from CarepathRx, which provides pharmacy services to hospitals and is owned by private equity firm Nautic Partners. Elevance plans to integrate BioPlus’ professional services into its IngenioRx Pharmacy Benefits Manager.
“We are very focused on upselling add-on products and services related to IngenioRx, such as cost reduction programs, professional condition management programs, and digital adherence programs,” Peter Elevance Health Executive Vice President Haytaian told investors during the company’s third-quarter earnings call last month. The company, formerly known as Anthem, did not immediately respond to an interview request.
IngenioRx’s revenue for the quarter increased 10.7% YoY to $7.2 billion. PBM accounted for 18% of Elevance’s $39.6 billion in revenue. More than 60% of the company’s revenue comes from its government health plan business.
Elevance expects the acquisition of BioPlus to close in the first half of next year. The deal won’t have a material impact on adjusted earnings per share next year, according to the company.
BioPlus provides pharmacy care to patients with chronic diseases such as cancer, multiple sclerosis, and hepatitis C, and operates a center of excellence to help oncology and multiple sclerosis patients receive drug therapy and navigation therapy. Elevance plans to expand the Center of Excellence into new therapeutic areas.
Ultimately, the insurer’s goal is to link BioPlus’ pharmacy services with its care delivery arm. For example, if BioPlus’ team identifies a patient who might benefit from home care, the company will refer them to an Elevance provider.