Catamaran Corporation
| Company type | Subsidiary |
|---|---|
| Industry | Pharmacy benefit management, Health informatics |
| Predecessor | Systems Xellence (SXC Health Solutions) |
| Founded | 1993 |
| Fate | Acquired by UnitedHealth Group |
| Successor | UnitedHealth Group OptumRX division |
| Headquarters | Chicago , United States |
Area served | United States |
| Products | Pharmacy benefit management, Health informatics services, RxCLAIM platform |
| Owner | UnitedHealth Group |
| Parent | UnitedHealth Group OptumRX |
Catamaran Corporation—previously known as SXC Health Solutions—has been part of UnitedHealth Group's OptumRX division since July 2015. The company specialized in providing pharmacy benefit management alongside health informatics services to various U.S.-based organizations, including health plans and employers. Functioning independently from insurers and government entities, Catamaran ensured third-party validation through its online prescription drug claims platform, RxCLAIM. Its operations were divided into three interconnected business units focused on prescription medication programs. Notably, in 2013, Cigna Corporation accounted for 23% of the company’s revenue.
The firm experienced substantial expansion in 2008, doubling its size; between 2005 and 2010, revenue grew by an impressive 3,400%. Originating as a Canadian startup, Catamaran leveraged both government funding and private capital, facilitating the development of its business model before its initial public offering on NASDAQ in 2009. This blend of public and private investment was recognized for offering adaptability and value. In 2013, revenues rose by 49%, fueled by a full year of prescription claim processing at the Catalyst division and increased volume following the acquisition of Restat. On March 30, 2015, UnitedHealth Group announced it would acquire Catamaran for $12.8 billion.
History
Systems Xellence (SXC) was established in 1993 and went public on the TSX in 1995. The company expanded through acquisitions such as Illinois-based ComCoTec in 2001. After its NASDAQ listing in 2006, SXC moved its headquarters from Milton, Ontario to Chicago to consolidate operations with ComCoTec’s location. The company was an innovator in pharmacy benefit management technology, securing a strong competitive position within the healthcare sector.
In 2008, SXC Health Solutions acquired National Medical Health Card Systems, Inc. (NMHC) for $143 million, effectively doubling its size and workforce; NMHC now operates as InformedRx under SXC. Later that same year, the company also purchased Zynchros, a Seattle-based firm specializing in formulary management, broadening its pharmaceutical service offerings.
On December 2, 2010, SXC expanded its specialty pharmacy capabilities by acquiring MedfusionRx, Inc. for $100 million. This acquisition enhanced cost management for complex medical conditions and extended voice messaging and clinical services across all U.S. states. Since its inception in 2003, MedfusionRx had overseen $270 million in drug expenditures.
In 2012, SXC agreed to purchase competitor Catalyst Health Solutions Inc. through a $4.14 billion cash-and-stock transaction. Following this deal, SXC rebranded as Catamaran Corp., signifying its enlarged market presence and business development.
UnitedHealth Group completed the acquisition of Catamaran Corp., a prominent pharmacy benefit manager, in 2015 for $12.8 billion—substantially strengthening UnitedHealth’s global reach and market position within healthcare.
Business segments
SXC’s operations are divided into three primary segments: InformedRx, Healthcare IT Group (HCIT), and Health Business Systems.
InformedRx serves as SXC’s pharmacy benefit management division, providing services such as formulary administration, benefit plan design, pharmacy network oversight, drug utilization review, clinical support services, consulting, reporting solutions, mail service pharmacy options, specialty pharmacy offerings, and consumer-facing web resources.
The Healthcare IT Group oversees the company’s technological infrastructure including platforms like RxCLAIM, RxTRACK, and RxPORTAL that facilitate electronic prescription processing. This segment also delivers pharmacy technology services utilized by application service providers and encompasses Zynchros—a supplier of formulary management software tools.
Health Business Systems supplies management software tailored for retail pharmacies as well as institutional settings such as nursing homes and mail order pharmacies.
Customers
Among SXC's clientele are prominent entities including Cigna, HealthSpring, PharMerica, TennCare, Boston Medical Center HealthNet Plan, and Health Alliance of Michigan.