Catamaran Corp (USA) (CTRX) CFO Mike Shapiro says the company has deployed capital through an aggressive M&A strategy over the last several years. He says management believes that the best way to create value for shareholders is by continuing to deploy capital for M&A.
“We’ve done eight highly accretive acquisitions over the last six years, primarily by acquiring middle-market PBMs, which are subscale and don’t have the span of services and capabilities that Catamaran has,” Shapiro says. “And within those acquisitions, a number of those, interestingly, were legacy Catamaran technology partners. So the integration of the acquisitions over the past several years has been relatively low from a risk perspective, given the fact that we already had an existing relationship with most of these PBMs.”
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Shapiro says Catamaran drives value for shareholders through the scale the company has amassed to better drive cost-of-goods synergies across its book of business. At this point, Catamaran’s capital structure is very strong, and the company is positioned to continue to generate meaningful cash flow from underlying operations while also pursuing M&A, Shapiro says.
“As we look at the universe of opportunities, we continue to manage a very robust pipeline of opportunities, and they include subscale, small and middle-market PBMs where we believe we can drive cost-of-goods synergies and create value for the shareholders,” Shapiro says. “We’re increasingly focusing on specialty pharmacy assets as we build complementary capabilities to our Briova specialty pharmacy, as well as potentially complementary health care IT solutions, that could complement our best-in-industry RxClaim pharmacy adjudication platform.”
Catamaran Corp’s (CTRX) Revenues at $14.6 Billion Run Rate After Acquisition of Catalyst Health Solutions
June 13, 2013
The Chairman and CEO of Catamaran Corp (CTRX) and How He Built His Business
March 30, 2015
Catamaran (CTRX), Cerner (CERN) and athenahealth (ATHN) Enable HITECH Act Meaningful Use Adoption of EHR
October 24, 2012
First Republic Bank (FRC) Employs Aggressive Strategies to Face Regulatory Environment
January 06, 2015
Vertex Pharmaceuticals Incorporated (VRTX) Adheres to Business Strategy to Continue Success in Biotechnology Space
July 09, 2013
