MedImpact Acquires Prescription Discount Provider Apex Affinity
With two recent acquisitions, PBM expands services in a fast growing market
San Diego, CA — July 31, 2013 — MedImpact Healthcare Systems, Inc., the nation's largest privately held provider of pharmacy benefit management (PBM) services, today announced it will acquire Apex Affinity, a provider of consumer prescription savings programs to large affinity groups.
By reducing the cost of prescriptions not covered by insurance, Apex's services are good for consumers, employers, providers, and our nation's healthcare system," said MedImpact President Greg Watanabe. "This is – and with the implementation of healthcare reform will likely continue to be – a very diverse market, and we are pleased to welcome Apex into the MedImpact family of companies.
The purchase of Apex Affinity is the second strategic investment MedImpact has made in the prescription savings market in recent weeks. On July 15, the company announced an agreement to purchase ScriptSave, a provider of consumer-focused pharmacy loyalty programs and integrated benefit design solutions. Together, these companies will enable MedImpact to provide end-to-end prescription discount services and loyalty programs to health plans, retailers, large employer groups, financial services and direct marketing firms, as well as other channels.
By offering prescription discount programs to their members, these organizations can increase member satisfaction and loyalty, attract and retain top talent, and gain a competitive edge in the market.
"As drug costs continue to rise and drug formularies get smaller, the number of people turning to prescription discount programs will continue to grow," said Scott Paul, Apex Affinity's CEO. "Joining forces with both MedImpact and ScriptSave will enable us to reach more organizations and consumers, provide a greater array of services, and accelerate our growth."
With the purchase of Apex, MedImpact will be gaining a team with nearly three decades of experience designing, managing and marketing prescription discount programs. The Apex leadership helped launch one of the first discount cards in the 1980s, and has managed programs that have saved consumers more than $1 billion in drug costs.
These acquisitions also advance MedImpact's mission of improving the value of healthcare, in this situation by promoting drug adherence. According to the Kaiser Family Foundation, nearly four in ten Americans cut pills, skip doses, or do not fill prescriptions due to cost.
Prescription non-adherence is an epidemic in this country. It results in early hospital readmissions, lost productivity and wages, crowded ERs and higher costs for everyone," said Watanabe. "Innovative companies like Apex and ScriptSave are an important part of the MedImpact solution.
MedImpact is purchasing Apex from private equity firm SilverStream Capital and Mr. Paul. The transaction is expected to close in the third quarter
About MedImpact Healthcare Systems, Inc.
MedImpact Healthcare Systems, Inc., founded in 1989 and headquartered in San Diego, CA, is a PBM that combines subject matter expertise with innovative technology and services to deliver better health care outcomes and improve its clients' positions in the market. MedImpact provides PBM services to 47 million members of health plans, hospitals and employers in the U.S. and abroad. MedImpact's model is unique: avoiding conflict of interest by not owning mail order or specialty pharmacies and instead deriving revenue from effectively managing client pharmacy benefits. MedImpact's results are quantified through detailed peer analysis, demonstrating how the company can help its clients be market leaders rather than followers
About Apex Affinity
Apex Affinity provides innovative services that help organizations reach new customers, increase satisfaction and loyalty, and create new revenue streams. From traditional retail discount cards to the latest e-marketing technologies, Apex enables affinity groups to engage their members, offer high-value services, and grow. For more information, visit www.apexaffinity.com.
Gordon Romanas, Vice President of Marketing
MedImpact Healthcare Systems, Inc.