Lilly Canada Acquires RxPlus

Eli Lilly Canada Inc has entered into a definitive agreement to acquire Sudbury-based RxPlus, a leading Canadian company in the prescription drug adjudication market. This is Lilly's third recent foray into the sector; first with its $4 billion purchase of PCS, and earlier this month with its joint venture with Glaxo Wellcome in South Africa taking over Medikredit (Marketletter May 15).

RxPlus is an information technology-based firm that manages the processing (or adjudication) of drug benefit claims. Lilly's US parent says the combination of Lilly Canada and RxPlus resources and capabilities will lead to more comprehensive service for the customers of both companies. Lowering overall health care costs while at the same time improving the quality of care is possible through patient and provider education, more appropriate utilization of drugs and the application of information technology, it adds.

With Lilly Canada's support, the company continues, RxPlus, which currently manages health benefits for approximately 500,000 Canadians, is poised for aggressive growth and rapid expansion of its customer base.