Piramal Enterprises acquires US software maker for up to $24.5 mln

piramalPiramal Enterprises Ltd said it acquired the assets of pharmacy software maker Adaptive Software, LLC and entire control and ownership of its wholly owned subsidiary, AdaptiveRx LLC for $7.4 million.

Adaptive is eligible to receive up to an additional $11.1 million if and when it meets certain post-closing requirements, which must be satisfied within six (6) months following the Closing Date, it said. Adaptive is also eligible to receive additional payments up to $6.0 million in aggregate based on the future performance of the Adaptive business in calendar years 2016 and 2017.

The total potential consideration to be paid to Adaptive is $24.5 million.

Adaptive sells a suite of software products to U.S.-based Pharmacy Benefit Managers (PBMs) and health insurers – both of which must maintain complex pharmacy benefit design data such as drug lists, formularies, restriction, and pricing.

These products streamline prescription formulary management, pharmacy networking, pricing, and pharmacy benefit design.

The US firm had revenue of $3.2 million in 2015.’

Piramal Enterprises Limited (PEL) is one of India’s large diversified companies, with a presence in Healthcare, Healthcare Information Management and Financial Services. PEL’s consolidated revenues were over $ 830 million in FY2015, with approx. 70% of revenues from outside India.

Adaptive’s software suite consists of the following four products:

RxFlex manages and publishes formularies, which are the lists that incentivize or dis-incentivize drug consumption and enable pharmaceutical firms to distribute their drugs in the market.

RxFlex also manages the publishing of these data, interfacing with adjudication systems and communicating coverage to members.

RxPricing is a pharmacy network and drug pricing solution that helps PBMs understand the “spread” they make on each drug, based on price negotiated and contracted reimbursement values for particular drugs.

RxConstruct is an end-to-end solution benefit management solution. It captures broad benefit design, including detailed network and drug restrictions, formularies, and pricing. RxConstruct is the hub of data the flows throughout the Rx value chain.

RxTickets is a call center workflow tool that enables Payers and PBMs to document and respond to incoming member queries about drug coverage.