BREAKING: Omnicell Buys PSG’s 340B Line of Business, the Latest in a Trend of 340B TPA Acquisitions

Your 340B Report for Wednesday August 12, 2020

Omnicell’s purchase today of PSG’s 340B third party administrator line of business, 340B Link, is the latest in a string of 340B TPA acquisition’s during the past several years.

Omnicell Buys PSG’s 340B Line of Business, the Latest in a Trend of 340B TPA Acquisitions

Omnicell Inc., a leading provider of automated drug dispensing systems and other prescription drug supply chain products and services, has agreed to buy Pharmaceutical Strategies Group’s 340B Link business, PSG’s 340B third party administrator (TPA) suite of services. (PSG is a 340B Report sponsor.) Omnicell, which is based in Mountain View, Calif., will pay PSG $225 million for 340B Link.

The acquisition reflects a trend in the 340B TPA industry that began several years ago. MacroHelix is owned by drug distributor McKesson Corp.; Wellpartner by PBM/retail pharmacy/insurance conglomerate CVS Health; Verity Solutions by Express Scripts, the PBM subsidiary of insurance company Cigna; and SunRx by the PBM MedImpact. A number of the other 340B TPAs have received significant investments from or have been acquired by private equity firms.

"Omnicell makes a great partner because they are focused on the same client priorities that we are, and their mission and values are aligned with ours,” said Dave Borden, PSG’s long time CEO. "They have got the resources to invest in the 340B Link platform and business. And we share many customers across the end-to-end pharmacy supply chain.” 

PSG’s 340B management and operations team, led by Dee Jones, will be joining Omnicell, Borden said. PSG’s employee benefits consulting division will remain in place, led by Borden, Michael Lonergan, and Bill Brewer.

“This is an exciting transaction for Omnicell that accelerates our strategic transformation and brings us even closer to achieving the long-term vision of the Autonomous Pharmacy,” said Randall Lipps, Chairman, President, CEO, and founder of Omnicell. “Key to realizing this vision is supporting health systems and providers as they manage an increasingly complex medication management supply chain,” said Lipps.

“The 340B program is a significant part of that supply chain, and PSG’s market-leading 340B Link business adds distinct capabilities and software-enabled services to our portfolio, which will help providers manage compliance and reporting requirements for their 340B program, while capturing eligible drug cost savings. We believe that by expanding our offerings and enhancing our pharmacy supply chain capabilities, we will position Omnicell for long-term growth and success,” added Lipps.