News Releases

Pharmacy Benefit Manager ESI Canada to Acquire CAPSS

MISSISSAUGA, ON and MONTREAL, QC, Oct. 16 /CNW/ - ESI Canada and the shareholders of Centre d'autorisation et de paiement des services de santé (CAPSS) Inc., the second and third largest Canadian pharmacy benefit management (PBM) companies, respectively, today jointly announced acceptance of an offer from ESI Canada to acquire CAPSS, subject to regulatory approval and the satisfaction of certain conditions. The deal is expected to close by the end of the year. Financial terms were not disclosed.

ESI Canada is a wholly owned subsidiary of Express Scripts Inc. Six shareholders compose CAPSS' ownership, including five important insurance carriers: Desjardins-Laurentian Life Assurance Inc., La Survivance, SSQ Vie, La Capitale Assurances MFQ Inc., and Industrielle-Alliance. CAPSS is headquartered in Montreal.

The move will net ESI Canada an additional 1.5 million lives, representing a 75-percent increase in business. With the transaction, ESI Canada gains its first operational presence in Quebec. ESI Canada will open offices and a call centre in Montreal to service CAPSS' current customers in Quebec.

"We entered this agreement with full confidence that our plan members will continue to receive excellent service and CAPSS carriers will benefit from access to ESI Canada's world class technology and services across Canada," said Camille Fortier, president of CAPSS. "It is important to mention that this transaction will not cause any change to employers, associations, unions, or CAPSS plan members."

ESI Canada simultaneously announced plans to expand services, including the development of a single system capable of adjudicating multiple types of health benefits.

"ESI Canada is very pleased to offer CAPSS customers the ability to process all health claims on a single platform for their business across Canada," said Jean Joubert, president of ESI Canada and vice president for international operations, Express Scripts. "As a result of our investment in new technologies and knowledge, both clients and their members will enjoy a much more efficient level of service."

Setting the pace in the Canadian pharmacy benefit market with world class technology and innovative products, ESI Canada has experienced major growth in membership and claims volume over the past four years. ESI Canada acts as an intermediary among insurance companies, third-party administrators, pharmaceutical companies, pharmacies, physicians and patients, and provides a complete Pharmacy Benefit Management solution to its clients.

The two companies have maintained a collaborative relationship since 1998, when CAPSS began using ESI Canada to augment its capabilities by processing its prescription drug claims outside Quebec.

"High pharmaceutical prices and the need to control pharmacy benefit costs are issues of global concern," said Express Scripts President and CEO Barrett Toan. "With this agreement, we will substantially expand our activity in Canada and bring to ESI Canada clients in Quebec new opportunities for containing costs while maintaining a high standard of care."

Express Scripts, a Fortune 500 and Forbes Platinum 400 company, is one of the largest independent pharmacy benefit managers in the United States, providing pharmacy services and pharmacy benefit plan design consultation for more than 10,000 clients and covering 40.5 million lives.

For further information:
Contacts: Jean Joubert, ESI Canada,
(905) 712-6330,
jjoubert@express-scripts.com

Danny Faria, ESI Canada,
(905) 712-8615, ext. 2313,
dfaria@express-scripts.com

Jocelyne Douville, Desjardins-Laurentian Life Assurance Inc.,
(418) 838-7800, ext.7797,
jdouville@avdl.com