Catalyst Health Solutions to Provide PBM Services to Independence Blue Cross

Ropes & Gray recently advised Independence Blue Cross (IBC), a leading health insurer in southeastern Pennsylvania, in its negotiations of new pharmacy benefits management agreements with Catalyst Health Solutions (Catalyst), the fourth-largest publicly traded pharmacy benefits manager (PBM) in the U.S. "Catalyst will provide IBC access to additional pharmacy management and contracting capabilities, as well as expanded sales and marketing resources, enhancing our ability to bring value to our customers," stated Joseph A. Frick, president and CEO of Independence Blue Cross.

Catalyst will provide the PBM services to IBC after the consummation of the sale of IBC's subsidiaries FutureScripts, LLC and FutureScripts Secure, LLC to Catalyst. FutureScripts and FutureScripts Secure are pharmacy benefits management companies and the FutureScripts brand will continue post-transaction, with FutureScripts providing PBM services for commercial lines of business and FutureScripts Secure, Medicare business.

The deal was announced August 4 and is expected to close later in 2010 pending customary conditions and antitrust clearance. The $225 million sale price includes the future tax benefit Catalyst would enjoy based on the structure of the transaction.

The Ropes & Gray team was led by health care partner Dan Roble and included associates Margaret Campbell and Mira Burghardt. Specialists on the team included business restructuring partners Jim Wilton and Mark Bane, and life sciences partner Michael Beauvais.