St. Louis, Missouri-based insurer Centene has become the majority shareholder in Spanish healthcare company Ribera Salud by purchasing an additional 40 percent stake in the organization from Banco Sabadell.
The deal increases Centene’s ownership of the company from 50 percent to 90 percent. Financial terms of the deal were not disclosed.
Ribera Salud is a Valencia-based integrated healthcare provider that provides private management of government sponsored healthcare programs in Spain and Slovakia. Centene initially purchased a stake in the company back in 2014 for $17 million.
That provided a entryway into the Spanish markets that Centene further developed last year through the purchase of a majority stake in the University Hospital of Torrejón, which is managed by Ribera Salud.
“We are pleased to grow our stake in Ribera Salud and to further demonstrate our commitment to developing our international portfolio,” Centene CEO Michael Neidorff said in a statement. “With this transaction, Centene is positioned to expand our innovative solutions internationally through cutting-edge technology, value creation and positive outcomes for our customers.”
Centene is also active in the United Kingdom, where it helps support UK accountable care initiatives and care coordination among local providers by providing services like data analysis, logistics and the development of IT products.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
The company is also an investor in The Practice Group, a healthcare service provider that works with the NHS on providing primary care and outpatient services in specialties like Ophthalmology and Dermatology.
Domestically, Centene’s impending acquisition of fellow insurer Wellcare was recently approved by a large majority of shareholders. The companies have stated they expect the deal to close by the first half of 2020.
The deal, which was initially announced in March, would create the fourth largest insurer in the U.S. with an estimated 22.3 million members across all 50 states. The combined company would be a leader within the government payer segment, where it would have around 12 million Medicaid and 5 million Medicare members.
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