Medco to Pay $730M for United BioScience to Gain Evidence-Based Research Capabilities

UBC will operate as a stand-alone subsidiary to make smarter use of treatment resources.

Medco Health Solutions will buy United BioScience (UBC) for about $730 million in cash, subject to regulatory clearance. UBC is a scientific and medical affairs organization specializing in post-approval research to help guide the most effective use of biopharmaceuticals. The firm offers services and studies for peri- and post-approval product development; safety and risk management; health economics and outcomes research; pricing, coverage, reimbursement, and access strategies.

Medco says it aims to operate UBC as a stand-alone subsidiary “Prior to this transaction, we completed several meaningful studies with our clients to evaluate the impact of emerging technologies on health outcomes,” states Robert Epstein, M.D., Medco’s CMO and president of the Medco Research Institute. “Based in strategic locations worldwide, the 1,500 employees of UBC have created a powerful, complementary engine for more rapidly advancing clinical insight, discovery, and innovation in the areas of safety, economics, and outcomes research.”

UBC is estimated to achieve revenues of $280 million in 2010, with an annual growth rate of over 20%, the companies claim. “The acquisition of UBC represents Medco’s ongoing commitment to provide innovation and value in healthcare, extending our global footprint into the areas of health information technology, information services, and research”, adds David B. Snow Jr., Medco chairman and CEO. “UBC’s products and services broaden the Medco portfolio consistent with our core mission of making medicine smarter through the generation, translation, and application of evidence critical to the delivery of high-quality, cost-efficient care that improves patient outcomes.”

Medco is a pharmacy benefit manager that operates what it claims is the U.S.’s largest mail order pharmacy operations. The organization’s Medco Research Institute is an evidence-based research organization focused on translating treatment-related research and data into improved patient outcomes and lower overall healthcare costs.