The deal is expected to bolster Cardinal Health's offering in key therapeutic areas by improving its downstream provider-focused analytics capabilities and service offerings, while also expediting the company's upstream data and research opportunities with biopharma manufacturers
Cardinal Health has agreed to acquire a technology enabled multi-speciality group purchasing and practice enhancement organisation Specialty Networks and its PPS Analytics platform in an all-cash deal worth $1.2bn.
Based in the US, Specialty Networks is an integrated multi-speciality platform with group purchasing organisations (GPO), life sciences, and research solutions in urology, gastroenterology, and rheumatology.
The firm offers solutions such as patient population health management, patient engagement, clinical research, and workflow automation technologies.
Specialty Networks’ PPS Analytics analyses data from electronic medical records (EMR), imaging, practice management, and dispensing systems and converts it into actionable insights for providers, researchers, payers, and policymakers.
The analytics platform leverages artificial intelligence (AI) to analyse millions of data points and generate insights for diagnostic and therapeutic interventions.
Specialty Networks CEO Shailendra Sharma said: “Specialty Networks and Cardinal Health are united in their mission to deliver value for specialty physician practices and their patients and manufacturers with best-in-class offerings.”
“This partnership is a strong cultural fit and a big win for physicians and patients.”
Through the acquisition of Specialty Networks, Cardinal Health aims to generate enhanced clinical and economic value for 11,500 specialty providers, including over 7,000 physicians across 1,200 independent physician practices.
Besides, the deal will bolster Cardinal Health’s offering in key therapeutic areas by improving its downstream provider-focused analytics capabilities and service offerings.
It will also expedite the company’s upstream data and research opportunities with biopharma manufacturers.
Furthermore, the transaction will expand Cardinal Health’s portfolio of clinical, practice management, and distribution solutions delivered to support the success of speciality practices across the US.
Cardinal Health also intends to accelerate its ongoing development of the Navista Network, which is focused on supporting clinical and operational requirements of independent community oncologists.
Cardinal Health CEO Jason Hollar said: “Expanding in specialty is a top priority for us and we have been investing to expand our offering.
“The acquisition of Specialty Networks enhances our specialty strategy by providing new capabilities that strengthen the link between our downstream and upstream services, enabling us to create value for customers, manufacturer partners and patients.”
The deal is subject to the meeting of customary conditions, including receipt of mandated regulatory approvals.