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Perelman’s Discount Drug Company Said to Weigh Sale Interest

Perelman’s Discount Drug Company Is Said to Weigh Buyer Interest

(Bloomberg) -- Ronald Perelman’s RxSaver is weighing a potential sale as it talks with suitors in a crowded market for services that save consumers money on prescription drugs, according to people with knowledge of the situation.

The drug discounter, part of online coupon provider RetailMeNot Inc., is in talks with potential bidders who expressed interest in buying the company’s assets, said the people, who asked not to be identified discussing a private matter. RxSaver hired investment bankers at Credit Suisse to serve as its financial adviser to manage the process, the people said.

Perelman’s Discount Drug Company Said to Weigh Sale Interest

Backed by Perelman’s MacAndrews & Forbes Inc., RxSaver lets consumers compare prescription drug prices among pharmacies and offers savings through coupons and bar codes on its website and mobile app. When customers pay at the drugstore, RxSaver gets a cut of the sale as a transaction fee that’s included in the base price.

Representatives for RxSaver, MacAndrews & Forbes and Credit Suisse declined to comment.

The company competes with a number of rival services, including GoodRX.com, SingleCare.com and Americaspharmacy.com, which provide similar services offering savings on prescription drugs. Savings have become more crucial after the coronavirus as consumers face tighter personal budgets and have a heightened focus on their individual health care spending.

MacAndrews & Forbes, where Perelman serves as chairman and chief executive officer, controls RetailMeNot’s parent company, Vericast Corp., formerly known as Harland Clarke Holdings.

Perelman’s Discount Drug Company Said to Weigh Sale Interest

Vericast’s 8.375% bonds due 2022 were among the top gainers in the U.S. high-yield market on Thursday after news of RxSaver weighing buyer interest. The first-lien notes rose as much as 2.5 cents on the dollar to 82.25 cents, according to Trace bond trading data.

Read More: Perelman’s Vericast Launches Debt Swap To Extend Maturities

The company was approached by interested parties earlier in the year, but brushed off initial buyout interest to focus on internal growth, Bloomberg reported. At the time, the company expected revenue and transactions to expand fourfold more in 2020.

Rising Costs

Discount services for medicine have gained steam as pharmaceutical companies come under scrutiny for raising prices beyond what consumers can afford. RxSaver and its rivals are up against giant drug-store chains and middlemen that want to maintain their profits.

RxSaver’s service doesn’t require registration or membership, it doesn’t collect or sell consumer data and users can search products anonymously. It’s honored at most CVS, Walgreens, Rite Aid, Costco, Walmart, Target, Kmart, and Shopko outlets, according to its website.

RetailMeNot bought RxSaver in March 2018 for an undisclosed price. The acquisition was part of the company’s plans to expand beyond traditional retail into health-care services.

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