Elevance Health will pay an undisclosed sum to acquire specialty pharmacy company BioPlus, the company announced Wednesday.
The health insurer, which operates Blue Cross and Blue Shield plans in 14 states, will buy the company from CarepathRx, which provides pharmacy services to hospitals and is owned by Nautic Partners, a private equity firm. Elevance plans to incorporate BioPlus’ specialty services into its IngenioRx pharmacy benefit manager.
“We’re very focused on, as it relates to IngenioRx, upselling additional products and services, so things like cost-relief programs, specialty condition management programs and digital adherence programs,” Elevance Health Executive Vice President Peter Haytaian told investors during the company’s third-quarter earnings call last month. The company, formerly known as Anthem, did not immediately respond to an interview request.
IngenioRx’s revenue grew 10.7% year-over-year to $7.2 billion during the quarter. The PBM accounted for 18% of Elevance’s $39.6 billion in revenue. More than 60% of the company’s revenue comes from its government health plan business.
Elevance Health expects the BioPlus acquisition to close during the first half of next year. The deal will not have a material impact on adjusted earnings per share next year, according to the company.
BioPlus provides pharmacy care to patients living with chronic conditions such as cancer, multiple sclerosis and hepatitis C, and operates Centers of Excellence that help oncology and multiple sclerosis patients receive medications and navigate treatments. Elevance Health plans to expand the Centers of Excellence to new treatment areas.
Eventually, the insurer aims to link BioPlus’ pharmacy services to its care delivery arm. If BioPlus’ team identifies a patient who may benefit from home care, for example, the company would refer them to Elevance providers.