SXC Health Solutions changes name to Catamaran
LISLE, Ill. (AP) — SXC Health Solutions is changing its name to Catamaran following its more than $4 billion purchase of fellow pharmacy benefits manager Catalyst Health Solutions Inc.
The Lisle, Ill., company closed its acquisition earlier this month and said Tuesday its shares will start trading under the ticker symbol "CTRX" on Wednesday on the Nasdaq stock market.
A catamaran is a racing sailboat with two parallel hulls. The pharmacy benefits manager said it picked the new name to reflect its "nimble, flexible approach" to helping customers.
Pharmacy benefits managers, or PBMs, run prescription drug plans for employers, government agencies and other clients, using their large purchasing power to negotiate lower drug prices. They make money by reducing costs for health plan sponsors and members.
The companies announced their combination in April, and SXC Health said then that it would pay $28 in cash and a portion of its stock valued at $53.02 per share for each share of Catalyst. That equaled a purchase price of $81.02 per share, a premium of about 28 percent over Catalyst's closing share price before the deal was announced.
Shares of SXC fell nearly 2 percent, or $1.84, to $93.14, in Tuesday afternoon trading, while the Nasdaq exchange dropped about 1 percent.