Catalyst CEO David Blair said in an interview that he believes the industry has helped save billions of dollars for its customers. Catalyst acts as an intermediary between health insurance plans, pharmacies and drug manufacturers, and helps manage customers' prescription plans.
Its stock price has climbed from $57 five years ago to about $90 this past week, after receiving a big boost on the news of the merger with SXC.
The SXC/Catalyst deal was prompted by a pair of larger competitors — Express Scripts Inc. and Medco Health Solutions Inc. — agreeing to merge in a $34 billion deal last month. To stay competitive, Catalyst and SXC chose to combine companies, according to Blair.
"There is definitely consolidation in our industry right now," said Blair, who noted that his company has bought a pair of similar companies in the last two years. "Scale is important. You have to buy other companies or be bought."
twitter.com/gussent
Text BUSINESS to 70701 to get Baltimore Sun Business text alerts 
