Medco expands research efforts with $730M deal for trial technology developer United BioSource

Medco Health will buy United BioSource for $730M

NEW YORK — Pharmacy benefits manager Medco Health Solutions Inc. said Monday it will buy United BioSource Corp., which develops technology used in clinical trials and patient monitoring, for $730 million in cash.

United BioSource, based in Bethesda, Md., designs phone and web technologies that clinical trial patients can use to provide information about their health. That information is used in post-approval research, or clinical trials that companies run after their devices or drugs are already on the market. The companies say United BioSource will report about $280 million in revenue in 2010.

The deal is expected to close in the third quarter and to add slightly to Medco’s profit in 2011.

Medco, based in Franklin Lakes, N.J. is the country’s largest pharmacy benefits manager, but in recent years it has expanded its ability to do research and compare the effectiveness of different drugs.

United BioSource was founded in 2003 and the company said it helps its clients evaluate costs, safety, health insurance coverage, reimbursement, and medical publications and communications.