PolyMedica catches Medco's eye; agrees to $1.5bn merger:
This article was originally published in Clinica
Shares in the mail-order diabetes supplies and services provider PolyMedica have been riding high in the last week, after the Wakefield, Massachusetts firm said it was to be bought by pharmacy benefit manager Medco Health Solutions for $53 per share. This gives the transaction a total value of $1.5bn. Franklin Lakes, New Jersey-based Medco is hoping the addition of PolyMedica's operations - which generated revenues of $675.5m and profits of $33.7m in fiscal 2007 - will enable it to better capitalise on the fast-growing $25bn diabetes care market. The transaction, slated to close in 2007, is expected to be slightly accretive to Medco's earnings in 2008.