Bethesda’s UBC to be Bought by Medco Health Solutions for $730 Million

By Dave Liss | August 18, 2010

(Bethesda, MD) - United BioSource Corporation (UBC), a Bethesda-based provider of development and commercialization services to healthcare technology firms, said on Monday that it will be acquired by New Jersey-based Medco Health Solutions in an all-cash deal valued at $730 million.

The acquisition will help Medco, a large provider of mail-order pharmacy services; improve its capabilities in data analytics and research. The deal is expected to close by the end of September, when UBC, which has 1,500 employees, will become an independent unit of Medco.

"To meet the three main objectives of national healthcare reform – improving quality and reducing costs in order to extend access – it is more critical than ever to ensure that our use of medicines is driven by scientific evidence and proven economic value. The acquisition of UBC represents Medco's ongoing commitment to provide innovation and value in healthcare, extending our global footprint into the areas of health information technology, information services and research," said David B. Snow Jr., Medco Chairman and CEO. "UBC's products and services broaden the Medco portfolio consistent with our core mission of making medicine smarter through the generation, translation and application of evidence critical to the delivery of high-quality, cost-efficient care that improves patient outcomes."

"At UBC, our scientists are focused on delivering actionable evidence to guide the safe and effective use of biopharmaceuticals and enhance the quality and value of health care," said Ethan Leder, UBC CEO, who founded the company in 2003 with President and CFO, Mark Clein. "Medco provides our team of industry-leading experts with an array of exciting new resources to accelerate growth, including opportunities to collaborate with its clients and contribute to the mission of delivering the right drug to the right patient at the right time."

The combination of America's leading advanced pharmacy with one of the world's most respected sources of post-approval drug and device research extends Medco's core capabilities in data analytics and research to further accelerate pharmaceutical knowledge – advancing patient safety and furthering evidence-based medicine.

The transaction, which will be funded through Medco's free cash and existing debt facilities, is subject to customary regulatory approvals and is expected to close in the third quarter of 2010.

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