McKesson to buy pharma tech firm Rx Savings for up to $875 million

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FILE PHOTO: Moderna's COVID-19 vaccine at the McKesson distribution center in Olive Branch, Mississippi

(Reuters) -Drug distributor McKesson Corporation said on Monday it would acquire private pharma technology firm Rx Savings Solutions for up to $875 million.

The company helps health insurers and employers seek lower cost prescription medicines, and also provides ongoing medication reminders to help improve adherence to prescriptions.

“Rx Savings Solutions’ offerings for employers and patients will strengthen McKesson’s ability to help solve the most common medication challenges related to access, affordability and adherence,” McKesson Chief Executive Officer Brian Tyler said.

The transaction, which includes a $600 million upfront payment and up to $275 million contingent on Rx Savings’ financial performance through 2025, is expected to close in the second half of fiscal year 2023.

(Reporting by Leroy Leo and Khushi Mandowara in Bengaluru;Editing by Vinay Dwivedi)