SB's Diversified Pharma Services Buys PDS

SmithKline Beecham's US pharmacy benefit management subsidiary, Diversified Pharmaceutical Services, has purchased Prescription Delivery Systems, a mail-order prescription pharmaceutical company based in Horsham, Pennsylvania. The move is in response to the market's increasing demand for mail-order prescription drugs, which currently account for about 15% of pharmaceutical purchases, says SB. Terms of the deal are not disclosed, but it is thought to be under $50 million.

At present, PDS has a level of technological sophistication unsurpassed in its field and is well equipped to handle expanded demand, according to SB, and DPS' chief executive Travers Wills stressed that the new mail-order capability will supplement, not replace, Diversified's primary delivery system - community pharmacies.

He said the acquisition is a strategic move, providing "a capability to deliver an essential service and allowing us to compete more effectively in the marketplace." Many Health Maintenance Organizations and major employers view mail-order pharmaceuticals as a way of lowering total drug costs for members or employees, he added, and the group can now offer a range of strategies aimed at reducing drug spending.