RxBenefits, a Birmingham-based pharmacy benefits optimizer (PBO), is acquiring Confidio, a pharmacy benefits consulting firm, pending regulatory approval. The terms of the acquisition were not disclosed.
The transaction will bring together the two complementary providers, significantly expanding the combined company’s ability to lower pharmacy benefits costs for self-funded employers and plan sponsors, regardless of group size.
Founded in 2011 and based in Maryland, Confidio offers customized strategies and a suite of pharmacy benefit procurement, consulting, audit and analytic solutions aimed at controlling costs, improving outcomes and preserving the integrity of clients’ prescription drug benefits.
“Pharmacy is a scale-driven business, with the best rates, rebates and service being extended to the health plans, government entities and employers whose annual prescription volume move the needle for the nation’s leading PBMs, which control more than 80% of the country’s prescription claims volume,” said Bryan Statham, CEO of RxBenefits. “Joining forces with Confidio marks the beginning of an exciting new chapter for RxBenefits as we advance our strategic vision to deliver a more affordable, clinically superior prescription benefit for the good of both plan sponsors and healthcare consumers. Our primary goal is to better address the key challenges small employers face in trying to maintain a robust and affordable pharmacy benefit.”
Earlier this year, RxBenefits underwent a recapitalization with investors Great Hill Partners and Advent International, which valued the company at approximately $1.1 billion, providing it with the capital to accelerate the build-out of its sales force, broker channels and technology.
Combined, RxBenefits and Confidio have 3 million members.