UnitedHealth Acquires Catamaran, Creating a Top-Tier PBM
Given the power and advantages that large PBMs possess along the pharmaceutical supply chain, UnitedHealth’s deal for Catamaran makes complete sense, writes Morningstar’s Vishnu Lekraj.
On March 30,
The acquisition is all cash, with United paying Catamaran shareholders approximately $12.8 billion, or $61.50 per share. While this represents a 27% premium to Catamaran's $48.32 March 27 closing price, we believe the purchase price is largely acceptable for shareholders of both firms, given our $64 fair value estimate for Catamaran. However, the lack of a premium purchase price over our fair value for Catamaran suggests United is getting a slightly good deal. The transaction is anticipated to close in the fourth quarter.
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