Catamaran Corporation
{{Short description|Former UnitedHealth pharmaceutical benefits management subsidiary now OptimumRX}}
{{Infobox company
| name = Catamaran Corporation
| predecessor = SXC Health Solutions
| logo =
| former_name = SXC Health Solutions
| type = Public
| traded_as = {{TSX was|CCT}}
{{NASDAQ was|CTRX}}
| fate = Acquired
| successor = UnitedHealth Group
| defunct = {{End date|2015|7|23}}
| genre =
| foundation = {{start date and age|1993}} (as SXC Health Solutions)
| founder =
| location_city = Schaumburg, Illinois
| location_country = U.S.
| key_people = Terrece C Burke (chair)
Mark A. Thierer (CEO)
| industry = PBM and Health informatics
| revenue = $14,780.094 mil{{increase}}49% 2013{{cite web|url=http://files.shareholder.com/downloads/ALXN/3177194974x0xS899866-14-34/899866/filing.pdf|title=Alexion Pharmaceuticals 2013 Annual Report|date=February 2014|access-date=2015-01-10|archive-url=https://web.archive.org/web/20140518134249/http://files.shareholder.com/downloads/ALXN/3177194974x0xS899866-14-34/899866/filing.pdf|archive-date=2014-05-18|url-status=dead}}
| assets = $7,995.763 mil{{increase}}8% 2013
| net_income = $287.739 mil{{increase}}138% 2013
| equity = $4,908.490 mil{{increase}}6% 2013
| num_employees = 4,000 (Dec. 31, 2013)
1,433 (Dec. 31, 2011)
1,216 (Feb. 25, 2011){{cite web|url=http://www.hoovers.com/company/SXC_Health_Solutions_Corp/rrcxxki-1.html|title=SXC Health Solutions Corp. info by hoovers}}
| divisions = informedRx
Healthcare IT Group
HBS Health Business Systems
| homepage = {{url|http://www.catamaranrx.com/}}
}}
Catamaran Corporation (formerly SXC Health Solutions) is the former name of a company that now operates within UnitedHealth Group's [https://www.unitedhealthgroup.com/newsroom/2015/0723optumrxcatamaran.html OptumRX division] (since July 2015). It sells pharmacy benefit management and medical record keeping services to businesses in the United States{{cite web|url=http://www.news-medical.net/news/20100304/SXC-Health-Solutions-and-HealthSpring-sign-PBM-contract.aspx|title=SXC Health Solutions and HealthSpring sign PBM contract|date=2010-03-04}} and to a broad client portfolio, including health plans and employers.{{Cite web|url=https://www.unitedhealthgroup.com/newsroom/2015/0330optumrxcatamaran.html|title=Catamaran and OptumRx to Combine - UnitedHealth Group|website=www.unitedhealthgroup.com|access-date=2020-04-16}} Working independently of the government and insurance companies allowed it to operate as a third party verifier; the RxCLAIM online claim processing system allowed for prescription drug claims to be processed online if the customer lived in and filled their prescription in the United States. SXC had three separate but interrelated business segments which dealt with prescription drug programs. For 2013, 23% of company revenue came from Cigna Corporation.{{cite web|url=http://www.catamaranrx.com/Investors/Annual-Reports/|title=catamaran 2013 report|access-date=2015-01-10|archive-url=https://web.archive.org/web/20150110135059/http://www.catamaranrx.com/Investors/Annual-Reports/|archive-date=2015-01-10|url-status=dead}}
Most of the company's growth came in 2008 when it doubled in size; between 2005 and 2010 revenue increased 3,400%. As a Canadian startup, the company received venture capital subsidies from the Canadian government in addition to private investments. These subsidies allowed the business to grow initially and establish its business model in advance of its initial public offering, which was offered through the NASDAQ exchange in 2009. The success of the mixed public and private approach in SXC's case has been called "perhaps the best example of the flexibility and the value added by the Canadian hybrid system."{{cite web|url=http://www.cantechletter.com/2010/05/10-moments-in-canadian-tech-stock-history-that-changed-the-world/|title=10 Moments in Canadian Tech Stock History that Changed the World SXC Health goes Public.|date=2010-03-31}} In 2013 company revenue increased by 49% thanks to a full year of prescription claims at the Catalyst division, and additional volumes from newly acquired Restat. On March 30, 2015, it was announced that Catamaran will be acquired by OptumRx (A UnitedHealth Group company).{{cite news|url=https://www.wsj.com/articles/unitedhealth-to-buy-catamaran-for-12-8-billion-in-cash-1427709601|date=2015-03-30|title=UHGMerger|newspaper=Wall Street Journal }}
History
Systems Xellence (SXC), founded in 1993, was a Canadian company that first went public in 1995 when it joined the TSX. Six years later, in 2001, it acquired ComCoTec, an Illinois-based software business.{{cite web|url=http://www.inside-healthcare.com/index.php?option=com_content&task=view&id=1860|title=sxc health solutions tailor fit|date=2008-05-31}}{{cite web|url=http://www.mosaid.com/corporate/investor-relations/reports/RevenuebyEmployee.pdf|title=cantech letter: Ranking Canada's Tech's|date=September 25, 2010|url-status=dead|archiveurl=https://web.archive.org/web/20111003151154/http://www.mosaid.com/corporate/investor-relations/reports/RevenuebyEmployee.pdf|archivedate=October 3, 2011}} After going public on the NASDAQ stock market in 2006, the company shifted its headquarters from Milton, Ontario to Chicago, the city ComCoTec was based in. SXC was one of the first companies to build technology used in pharmacy benefit management.{{cite news|url=https://www.theglobeandmail.com/report-on-business/small-business/grow/new-product-development/cashing-in-on-the-us-drug-craze/article1821069/page1/|title=Cashing in on the U.S. drug craze (The Globe and Mail)|date=December 1, 2010 | location=Toronto|first=John|last=Lorinc}}{{cite web|url=http://www.inside-healthcare.com/index.php/index.php?option=com_content&task=view&id=2292&Itemid=127|title=SXC Health Solutions: Built for Growth |date=2009-06-01}}{{cite web|url=http://utoledo.edu/outpatientpharmacy/pdfs/Benescripts_newsletter.pdf|title=University of Toledo|year=2010}}{{cite web|url=http://www.sterlingcommerce.com/about/news/Storage/20090428SXC+Health+Solutions+Transforms+Interactions+with+Pharmaceutical+Supply+Chain+Using+Sterling.htm|title=SXC Health Solutions Transforms Interactions with Pharmaceutical Supply Chain Using Sterling Business Integration Suite|date=2009-04-28}}{{cite web|url=http://www.thefreelibrary.com/SXC+Health+Solutions+receives+2007+Rx+Benefit+Innovation+Award.-a0159660484|title=SXC Health Solutions receives 2007 Rx Benefit Innovation Award|year=2007}}{{cite web|url=http://www.pbmi.com/awards.asp|title=Rx Benefit Innovation Awards Program|year=2010|url-status=dead|archiveurl=https://web.archive.org/web/20100801015624/http://www.pbmi.com/awards.asp|archivedate=2010-08-01}}
In February 2008, eight months after the company changed its name to SXC Health Solutions, it acquired National Medical Health Card Systems, Inc. (NMHC) for US$143 million in a move that doubled its size and workforce.{{cite web|url=http://www.chicagobusiness.com/cgi-bin/article.pl?article_id=30462|title=Making SXC Health Solutions a 'dominant player' (Chicago Business)|date=2008-08-28}}{{cite web|url=http://www.streetinsider.com/Hot+List/SXC+Health+(SXCI)+To+Acquire+National+Medical+Health+Card+(NMHC)+In+CashStock+Deal+Worth+$11Sh/3400953.html|title=SXC Health Solutions to acquired NMHC|date=2008-02-26}} It is now known as InformedRx, a division of SXC.{{cite web|url=http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=403605|archive-url=https://web.archive.org/web/20090710102405/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=403605|url-status=dead|archive-date=July 10, 2009|title=informedRx private company information|accessdate=2010-04-29}} On December 19, 2008, the company also acquired Zynchros, an eight-year-old Seattle-based formulary management business.{{cite web|url=http://www.medindia.net/health-press-release/SXC-Health-Solutions-acquires-Zynchros-Inc-41301-1.htm|title=SXC Health Solutions acquires Zynchros Inc.|date=2008-12-22}}
SXC purchased private company MedfusionRx, Inc on December 2, 2010 for $100 million. Reasons for the acquisition include an interest in strengthening SXC's position in the speciality pharmacy market and improving cost cutting capabilities in the management of complex conditions and improving supportive care.{{cite web|url=http://www.winnipegfreepress.com/business/breakingnews/sxc-health-buys-us-pharmacy-provider-medfusionrx-for-100-million-111191389.html|title=SXC Health buys U.S. pharmacy provider MedrusionRx for $100 million|date=2010-12-02}} MedfusionRx provides voice messaging services to people in all 50 US states as well as other clinical services to over 9000 patients. The messages have to do with medical treatment assistance including the delivery and refill reminders of medication and patient monitoring for people with chronic diseases. It was founded in 2003 in Birmingham, Alabama. Medfusion manages $270 million in drug spending.
In 2012, SXC agreed to buy rival Catalyst Health Solutions Inc. in a roughly $4.14 billion cash-and-stock deal.{{cite web | last=Kamp | first=Jon | title=Drug Plan Manager SXC to Buy Catalyst | work = Wall Street Journal| date=2012-04-18 | url=https://www.wsj.com/articles/SB10001424052702303425504577351370169730892}} Shortly thereafter, SXC Health Solutions Corp. renamed the company, Catamaran Corp.{{cite web|url=https://www.chicagobusiness.com/article/20120703/NEWS03/120709952/sxc-changing-name-to-catamaran-corp|title=SXC to rebrand as Catamaran Corp.|date=3 July 2012|website=Crain's Chicago Business}}
In 2015, health insurer UnitedHealth Group agreed to buy pharmacy benefit manager Catamaran Corp in a deal worth about $12.8 billion.{{cite news|title=UnitedHealth to buy pharmacy benefit firm Catamaran for $12.8 billion |publisher=Reuters|date=March 30, 2015|url=https://www.reuters.com/article/us-catamaran-m-a-unitedheal-grp/unitedhealth-to-buy-pharmacy-benefit-firm-catamaran-for-12-8-billion-idUSKBN0MQ0WT20150330 |accessdate=March 30, 2015}}
Business segments
SXC has three main business segments: InformedRx, Healthcare IT Group (HCIT), and Health Business Systems.
InformedRx is SXC Health Solution's pharmacy benefit management service. It deals with formulary administration, benefit plan design and management, pharmacy network management, drug utilization review, clinical services and consulting, reporting and information analysis, mail services and specialty pharmacy, and consumer web services.
Healthcare IT Group focuses on the technological aspects of the company. It includes the RxCLAIM, RxTRACK, and RxPORTAL customer interfaces, which support the electronic processing of prescriptions. It also includes pharmacy technology services (technology relied upon by application service providers), as well as Zynchros, a provider of formulary management tools.
Health Business Systems are management systems providers to retail, institutional or nursing home, and mail order pharmacy environments.
Customers
SXC Health Solutions has been used by various organizations, including Cigna,{{Cite web |url=http://www.catamaranrx.com/uploadedFiles/Documents/Annual_Reports/Annual%20Report%202013.pdf |title=Archived copy |access-date=2014-12-01 |archive-url=https://web.archive.org/web/20150213070702/http://www.catamaranrx.com/uploadedFiles/Documents/Annual_Reports/Annual%20Report%202013.pdf |archive-date=2015-02-13 |url-status=dead }} HealthSpring, PharMerica, TennCare, the Boston Medical Center HealthNet Plan, and Health Alliance of Michigan.
References
{{reflist}}
External links
- [https://www.reuters.com/finance/stocks/overview?symbol=SXCI.W Reuters entry]
Category:1993 establishments in Ontario
Category:Companies formerly listed on the Nasdaq
Category:Companies based in DuPage County, Illinois
Category:Health care companies established in 1993
Category:Health care companies based in Illinois
Category:Health care companies disestablished in 2015
Category:Information technology companies of the United States
Category:Pharmacy benefit management companies based in the United States
Category:Companies formerly listed on the Toronto Stock Exchange
Category:2015 disestablishments in Illinois
Category:2015 mergers and acquisitions
Category:American companies disestablished in 2015
Category:American companies established in 1993