Catamaran Corporation

Catamaran Corporation was a pharmacy benefit management and healthcare technology company that operated primarily in the United States and Canada. It was formerly known as SXC Health Solutions and, earlier, Systems Xellence. The company developed technology and managed services for prescription-drug benefit programs, serving employers, health plans, government-related programs, pharmacies, and other healthcare organizations. The business began in Canada in 1993 as Systems Xellence. Its early focus was on software for pharmacy-benefit administration and electronic prescription-claim processing. A major element of its technology offering was RxCLAIM, an online platform used to adjudicate prescription claims when members obtained medication through participating pharmacies. The company also developed related tools for pharmacy and benefit-plan administration, including RxTRACK and RxPORTAL. This technology-led model allowed Catamaran and its predecessor businesses to function as an intermediary between benefit sponsors, pharmacies, and members rather than as a conventional insurer or government agency. Systems Xellence first became publicly traded on the Toronto Stock Exchange in 1995. In 2001, it acquired ComCoTec, an Illinois software company. After a later Nasdaq listing in 2006, the company moved its headquarters from Milton, Ontario, to Chicago, reflecting the increasing importance of the United States market and the location of its acquired technology operations. In 2007, it adopted the name SXC Health Solutions. SXC expanded substantially through acquisitions. In 2008, it purchased National Medical Health Card Systems for approximately US$143 million. The transaction significantly increased the company's scale and added the InformedRx pharmacy benefit management business. Later that year, SXC acquired Zynchros, a Seattle-based provider of formulary-management software. In 2010, it bought MedfusionRx for approximately US$100 million. MedfusionRx provided medication-adherence and patient-support services, including automated treatment and refill reminders and monitoring programs for people with chronic conditions. These acquisitions broadened SXC from a software supplier into a more integrated pharmacy-benefit and clinical-services provider. In 2012, SXC agreed to acquire rival Catalyst Health Solutions in a cash-and-stock transaction valued at approximately US$4.14 billion. Following the transaction, SXC Health Solutions adopted the Catamaran name. The combined company operated across pharmacy benefit management, healthcare information technology, and pharmacy-management systems. Its services included formulary administration, benefit-plan design, pharmacy-network management, utilization review, clinical programs, specialty and mail-order pharmacy support, reporting, analytics, and member-facing web services. It also supplied management systems to retail, institutional, nursing-home, and mail-order pharmacy environments. Catamaran's customer base included major health plans, employers, public programs, and healthcare organizations. Reported customers and users included Cigna, HealthSpring, PharMerica, TennCare, Boston Medical Center HealthNet Plan, and Health Alliance of Michigan. Cigna represented a substantial concentration of revenue in 2013, accounting for approximately 23 percent according to the referenced company history. On March 30, 2015, UnitedHealth Group announced an agreement to acquire Catamaran for approximately US$12.8 billion. The transaction was completed later that year, and Catamaran's operations became part of UnitedHealth's OptumRx pharmacy-services organization in July 2015. Catamaran therefore ceased to operate as an independent public company and is now treated as a former corporate entity rather than an active standalone brand.

Catamaran's history began in 1993, when the Canadian company Systems Xellence was established to develop technology for pharmacy-benefit administration. Its systems supported electronic prescription processing and helped organizations manage drug-benefit programs. The company went public on the Toronto Stock Exchange in 1995, giving it access to capital while it continued developing its healthcare software business. In 2001, Systems Xellence acquired ComCoTec, an Illinois-based software company. The acquisition strengthened its presence in the United States and contributed to a later change in corporate geography. After obtaining a Nasdaq listing in 2006, the company moved its headquarters from Milton, Ontario, to Chicago. In 2007, it changed its name to SXC Health Solutions, a name that emphasized its health-technology and services orientation. SXC's major expansion phase began in 2008. It acquired National Medical Health Card Systems for approximately US$143 million, a transaction that roughly doubled the company's size and workforce. The acquired operation became associated with InformedRx, SXC's pharmacy benefit management business. In December of the same year, SXC purchased Zynchros, a Seattle company specializing in formulary-management tools. These transactions expanded the company beyond claims software into benefit administration and clinical decision support. In December 2010, SXC acquired privately held MedfusionRx for approximately US$100 million. MedfusionRx, founded in 2003 in Birmingham, Alabama, provided automated voice messaging and other clinical support services. Its programs included medication-delivery and refill reminders and monitoring for patients with chronic illnesses. The acquisition was intended to strengthen SXC's specialty-pharmacy capabilities and its ability to help manage complex and costly conditions. The company grew rapidly during this period. The referenced history reports that revenue increased by roughly 3,400 percent between 2005 and 2010, while the company more than doubled in size during 2008. Its expansion was supported by private investment and Canadian government-backed venture assistance before and around its public-market development. This combination of public and private support was cited as an example of the Canadian hybrid financing model for technology companies. In 2012, SXC agreed to acquire Catalyst Health Solutions, a competing pharmacy benefit manager, for approximately US$4.14 billion in cash and stock. The transaction created a larger integrated provider of prescription-benefit services and healthcare technology. After the deal, SXC Health Solutions changed its name to Catamaran Corporation. The new company organized its activities around pharmacy benefit management, healthcare information technology, and systems for retail, institutional, nursing-home, and mail-order pharmacies. Its InformedRx business handled formulary administration, benefit-plan design, pharmacy-network management, drug-utilization review, clinical services, consulting, reporting, analytics, mail services, specialty pharmacy, and consumer web tools. The Healthcare IT Group included RxCLAIM, RxTRACK, RxPORTAL, pharmacy technology services, and the Zynchros formulary platform. Health Business Systems supplied management software for pharmacy environments. Catamaran served a broad range of customers, including commercial health plans, employers, public programs, pharmacies, and other healthcare organizations. In 2013, Cigna accounted for approximately 23 percent of company revenue, while revenue growth was also attributed to the first full year of prescription claims processed through the Catalyst business and additional volumes from the acquired Restat operation. Catamaran's independent existence ended after UnitedHealth Group announced its acquisition of the company on March 30, 2015. The transaction, valued at approximately US$12.8 billion, was completed in 2015. Catamaran's operations were incorporated into UnitedHealth's OptumRx division in July of that year. As a result, Catamaran is now a former company and brand, with its services and technology continuing only within the acquiring group's business structure.

• 2015

  UnitedHealth Group acquisition

  [1]Catamaran Corporationen.wikipedia.org

  UnitedHealth Group acquires Catamaran for approximately US$12.8 billion, with the business joining OptumRx in July.

• 2012

  Catalyst Health Solutions acquisition

  [1]Catamaran Corporationen.wikipedia.org

  SXC completes an approximately US$4.14 billion cash-and-stock combination with Catalyst Health Solutions and subsequently adopts the Catamaran name.

• 2010

  MedfusionRx acquisition

  [1]Catamaran Corporationen.wikipedia.org

  SXC purchases MedfusionRx for approximately US$100 million to expand specialty-pharmacy and patient-support capabilities.

• 2008

  National Medical Health Card Systems acquisition

  [1]Catamaran Corporationen.wikipedia.org

  SXC acquires National Medical Health Card Systems for approximately US$143 million, adding scale and the InformedRx operation.

• 2008

  Zynchros acquisition

  [1]Catamaran Corporationen.wikipedia.org

  SXC acquires Seattle-based Zynchros, a provider of formulary-management technology.

• 2007

  Name changes to SXC Health Solutions

  [1]Catamaran Corporationen.wikipedia.org

  Systems Xellence adopts the SXC Health Solutions name.

• 2006

  Nasdaq listing and headquarters move

  [1]Catamaran Corporationen.wikipedia.org

  After listing on Nasdaq, the company shifts its headquarters from Milton, Ontario, to Chicago.

• 2001

  Acquisition of ComCoTec

  [1]Catamaran Corporationen.wikipedia.org

  The company acquires Illinois-based software business ComCoTec, strengthening its United States presence.

• 1995

  Initial Toronto Stock Exchange listing

  [1]Catamaran Corporationen.wikipedia.org

  Systems Xellence becomes publicly traded on the Toronto Stock Exchange.

• 1993

  Systems Xellence is founded

  [1]Catamaran Corporationen.wikipedia.org

  The Canadian predecessor to Catamaran is established as a pharmacy-benefit and healthcare software company.

A technology-enabled pharmacy benefit manager combining prescription-claim processing, benefit administration, clinical services, specialty-pharmacy support, and healthcare information systems.

• Pharmacy benefit management

  InformedRx

  Catamaran's pharmacy benefit management operation, covering formulary administration, benefit-plan design, pharmacy-network management, drug-utilization review, clinical services, consulting, reporting, analytics, mail services, specialty pharmacy, and consumer web tools.

• Prescription-claim processing software

  RxCLAIM

  An online prescription-claim processing system used to support electronic adjudication of pharmacy claims for eligible customers in the United States.

• Healthcare information technology

  RxTRACK

  A healthcare technology interface associated with SXC and Catamaran's pharmacy-benefit information systems.

• Healthcare information technology

  RxPORTAL

  A customer-facing interface within the company's healthcare IT portfolio, supporting access to pharmacy-benefit and prescription-related information.

• Formulary management software

  Zynchros

  Formulary-management technology acquired by SXC in 2008 and used to support the design and administration of prescription-drug formularies.

• 2015

  Sale to UnitedHealth GroupM&A

  Background

  Catamaran had become a large pharmacy benefit manager and healthcare technology provider with substantial United States operations.

  Action taken

  UnitedHealth Group agreed to acquire Catamaran for approximately US$12.8 billion.

  Aftermath

  The acquisition was completed in 2015, and Catamaran's operations became part of UnitedHealth's OptumRx division in July. Catamaran ceased to exist as an independent public company.

  Acquisition value. Approximately US$12.8 billion (2015)

  Source

• 2012

  Combine with Catalyst Health SolutionsM&A

  Background

  SXC sought greater scale in the competitive pharmacy benefit management market.

  Action taken

  SXC agreed to acquire Catalyst Health Solutions in a cash-and-stock transaction valued at approximately US$4.14 billion and subsequently changed its name to Catamaran.

  Aftermath

  The combination expanded Catamaran's claims volumes, customer base, and pharmacy-benefit capabilities.

  Transaction value. Approximately US$4.14 billion (2012)

  Source

• 2007

  Rebrand as SXC Health SolutionsStrategy

  Background

  The company was broadening from its original software identity into pharmacy benefit management and healthcare services.

  Action taken

  Systems Xellence changed its corporate name to SXC Health Solutions.

  Aftermath

  The new identity preceded further acquisitions and the company's later transformation into Catamaran.

  Source

1. 1Catamaran Corporationen.wikipedia.org