On January the 26th, the McKesson Corporation (NYSE: MCK) announced the acquisition of CoverMyMeds LLC. CoverMyMeds, which is a Francisco Partners Portfolio Company, was founded in 2008. The goal of the company is to ensure patients are able to gain access to the medications needed to live healthy lives. CoverMyMeds’ most notable feature is the electronic prior authorization service, which helps to automate and accelerate the prescription approval process. Without their assistance, the approval process would be time consuming and drawn out.
CoverMyMeds helps to ensure patients have access to the most suitable medications, while simultaneously eliminating administrative waste and unneeded medical spending. CoverMyMeds was picked up by Francisco Partners in 2014, as a way to help expand the company across the ecosystem connecting pharmacies, providers, manufacturers, and payers. McKesson and CoverMyMeds have actually coordinated together since 2010 to offer better solutions to pharmacies and to improve the business of health care.
The acquisition, which is pending, will make it possible for these companies to enhance the value of the services they offer to their customers. After the transaction closes, the co-founder and CEO, Matt Scantland, will remain at the head of the company alongside the current leadership team. The company will still be run from their Columbus and Cleveland, Ohio headquarters. McKesson has agreed to purchase the company for up to 1.4 billion dollars. A portion of the proceeds is contingent on the company’s future financial performance. To learn more about the acquisition, be sure to check out the official press release here.