SDM buys specialty Rx business

Chain Drug Review, August 18, 2008

TORONTO -- Shoppers Drug Mart (SDM) has acquired the HealthAccess specialty pharmacy business of Calea Ltd. Terms were not disclosed.

The business includes distribution and dispensing, therapy management, reimbursement consulting and other manufacturer services as well as Calea's call center business, including patient and drug manufacturer support and adherence monitoring. The acquired businesses will operate as Shoppers Drug Mart Specialty Health Network Inc., providing comprehensive patient support services for specialty pharmaceutical needs.

"This strategic acquisition provides Shoppers Drug Mart with a new platform to expand into special pharmacy services, enhance our ability to deliver superior patient support and, ultimately, harness the growth potential of specialty pharmacy, one of the fastest-growing segments of the pharmaceutical marketplace," says SDM president and chief executive officer Jorgen Schreiber. "Calea HealthAccess' talents and resources will benefit our associate-owners in their efforts to assist patients with their total health management."

Calea, the leading Canadian provider of patient-focused home infusion and medical supply services and products, has been serving tens of thousands of Canadians since 1984.

Based in Mississauga, Ontario, it operates nationally with facilities in Montreal; Calgary, Alberta; and Vancouver, British Columbia. Calea is a subsidiary of Fresenius Kabi, the leading infusion therapy and clinical nutrition provider in Europe and in parts of Latin America and the Asia-Pacific region.

The acquisition was hailed by analysts. SDM's entry into the $3 billion-a-year specialty pharmacy business in Canada follows the trend established in the United States by CVS Caremark Corp. and Walgreen Co., writes Desjardins Securities analyst Keith Howlett. "In a sea of retailing despair, Shoppers is one of a select few that will grow earnings per share in the second quarter."