Catalyst Health Solutions Inc., Rockville, Md. (NASDAQ: CHSI), reported revenue increased $333 million or 29.7% to $1.45 billion. Gross profit for the first quarter increased $33.7 million, or 54.8%, to $95.3 million from $61.6 million for the first quarter last year.
The company attributes the increase in revenue to additional prescription volume from Catalyst Rx Health Initiatives Inc., formerly Walgreens Health Initiatives, initiation of services with new PBM clients and price inflation on brand drugs, offset by client attrition, higher generic utilization and the impact of higher member copayments due to the annual reset of plan deductibles.
On April 18, Catalyst and SXC Health Solutions Corp. announced that their boards of directors have unanimously approved a definitive merger agreement under which SXC and Catalyst will combine in a cash and stock transaction valued at approximately $4.4 billion. Under the terms of the agreement, Catalyst shareholders will receive $28.00 in cash and 0.6606 shares of SXC stock for each Catalyst share. The merger, which is subject to approval by SXC and Catalyst shareholders, U.S. antitrust approval, and other customary closing conditions, is expected to close in the second half of 2012.
In other industry new:
Hub International Ltd., Chicago, Ill., acquired the assets of Association Benefits Insurance Agency Inc., a Lynnfield, Mass.–based insurance brokerage firm. Terms of the acquisition were not disclosed. The ABIA operation will become part of Hub International New England LLC. Co-principals Frank Venuto and Frank Michaud will join Hub New England, reporting to Michael S. Chapman, chief sales officer.
Founded in 2000, ABIA specializes in arranging commercial lines insurance programs for the members of a wide range of endorsed associations. Currently working with a dozen groups throughout the New England region, ABIA’s mission is to help develop and grow associations through the marketing and sales of insurance products to niche-based industries. Some of the insurance solutions they have implemented for various associations include programs for workers’ compensation, property and liability, commercial auto, health, etc. As a result of the acquisition, ABIA customers will gain access to the complete suite of insurance products and services available through Hub.
Allianz Life Insurance Co. of North America, Minneapolis, Minn., named Denise Brinker as the new assistant vice president, Learning and Development. In this role, Brinker leads the learning and development center of excellence for more than 4,800 employees across Allianz of America, which includes Allianz Life and Fireman’s Fund Insurance Company. She will oversee programs for employee engagement, career development, succession planning and process formation.
Brinker reports to Yvonne Franzese, senior vice president and chief human resources officer for Allianz of America.
Brinker joined Allianz Life in 1986 as an auditor and accounting manager. Since that time, she has held positions as a director for both the Training and Operations divisions, where she was responsible for program development and implementation as well as managing HR communications for Allianz of America. Most recently she was senior director of Learning and Development and HR chief of staff.
Great-West Life & Annuity Insurance Co., Greenwood Village, Colo., introduced Great-West SecureFoundation Smart Future, a retirement income solution developed for the bank affiliated broker/dealer market.