PE-backed RxBenefits to acquire Confidio

RxBenefits has agreed to acquire Confidio, a pharmacy benefits consulting firm.

RxBenefits has agreed to acquire Confidio, a pharmacy benefits consulting firm. No financial terms were disclosed. RxBenefits’ backers include Great Hill Partners and Advent International.

PRESS RELEASE

RxBenefits, a leading technology-enabled pharmacy benefits optimizer (PBO), today announced an agreement to acquire pharmacy benefits consulting firm, Confidio, pending regulatory approval. The pending transaction will bring together two premier, complementary providers of pharmacy benefits services, significantly expanding the combined company’s ability to lower pharmacy benefits costs for self-funded employers and plan sponsors, regardless of group size. In addition to driving down drug costs, the combined solution portfolio will also enable the PBO to better address the key clinical utilization management challenges that contribute to wasteful spending, subsequently enhancing member safety and health outcomes.

Founded in 2011, Confidio offers customized strategies and a robust suite of pharmacy benefit procurement, consulting, audit, and analytic solutions aimed to control costs, improve outcomes, and preserve the integrity of clients’ prescription drug benefits. Confidio’s mission is to advance the health and well-being of the communities it serves by sharing expertise and creating trusted relationships built on a foundation of service excellence and integrity.

RxBenefits and Confidio share a passion for optimizing both the economic and clinical value derived from pharmacy benefits for plan sponsors and the combined 3 million member lives — and growing — that the organizations serve.

“Pharmacy is a scale-driven business, with the best rates, rebates, and service being extended to the health plans, government entities, and employers whose annual prescription volume move the needle for the nation’s leading PBMs, which control more than 80% of the country’s prescription claims volume,” said Bryan Statham, Chief Executive Officer, RxBenefits. “Joining forces with Confidio marks the beginning of an exciting new chapter for RxBenefits as we advance our strategic vision to deliver a more affordable, clinically superior prescription benefit for the good of both plan sponsors and healthcare consumers. Our primary goal is to better address the key challenges small employers face in trying to maintain a robust and affordable pharmacy benefit.”

Statham continued, “We act as advocates for small and mid-sized employers and their members. We are doing this deal because we believe that the combination of our experienced workforces, powerful analytics capabilities, and clinical expertise, along with our independent, client-aligned service models, will allow the unified company to better manage these plans to lowest net cost while improving health outcomes and delivering an unrivaled client and member experience.”

“Confidio was founded a decade ago on a passion for going beyond the expected to help clients navigate the complex pharmacy benefits landscape” said Scott Vogel, Co-Founder & Chief Executive Officer, Confidio. “Our commitment to delivering both turnkey and fully customized solutions to meet the unique objectives of all the clients we serve, regardless of size or industry, has not changed and will continue well into the future. By partnering with RxBenefits, we will enhance the value of our consulting services and solutions portfolio, as well as our scale and incredible talent, to provide unmatched value across the entire spectrum of plan sponsors.”

Today’s milestone follows an active year for RxBenefits. In January 2021, current investors Great Hill Partners, a leading growth-oriented private equity firm, and Advent International, one of the largest and most experienced global private equity investors, completed a recapitalization of RxBenefits, valuing the company at approximately $1.1 billion, providing the company with capital to accelerate the build-out of its salesforce, broker channels, and technology. In addition, in August 2020, in response to industry gaps that result in many self-insured employers significantly over-paying for pharmacy benefits, RxBenefits launched the first and only pharmacy benefits optimizer, or PBO, which uses advanced data science to advocate for the best economic and clinical interest of self-funded plan sponsors and their members, empowering benefits advisors and plan sponsors to purchase pharmacy benefits like a Fortune 10 employer, regardless of group size.

Additional information about the deal will be available upon the completion of regulatory approvals and other customary closing conditions.