Express Scripts Sells Net Pharmacy to Planetrx.Com
Page 1 of 1
Independent pharmacy benefit management firm Express Scripts Inc. will transfer the e-commerce assets of its yourPharmacy.com subsidiary to PlanetRx.com Inc. in a deal valued at $55 million over five years.
The agreement will give Express Scripts a 19.9 percent ownership share in PlanetRx.com, which will serve as the exclusive Internet pharmacy for Express Scripts' 36 million members.
The deal will occur simultaneously with an initial public offering planned by PlanetRx.com.
PlanetRx.com will pay Express Scripts certain fees in excess of $11 million annually and will provide additional financial support for the development of Express Scripts' other Internet capabilities for five years, with a potential five-year extension.
"PlanetRx.com's excellent brand awareness, technology and distribution infrastructure allow Express Scripts to accelerate our Internet pharmacy initiative," said Barrett Toan, president and chief executive officer of Express Scripts.
"This relationship enables us to focus on delivering excellent pharmacy benefit services and health information to our clients and their members."
Under the terms of the agreement, Express Scripts will promote PlanetRx.com as Express Scripts' exclusive Internet pharmacy to fill prescriptions and market other health and wellness products to Express Scripts' plan members.
Express Scripts, which will retain ownership of the domain name yourPharmacy.com, will link PlanetRx.com to yourPharmacy.com and actively promote PlanetRx.com.
"We're uniting the benefits of PlanetRx.com's strong commerce capabilities and Express Scripts' strong content expertise" said William Razzouk, chairman and chief executive officer of PlanetRx.com.