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Will Ashworth, SXC Health Solutions

SXC Health Solutions NASDAQ:SXCISXC Health Solutions (NASDAQ:SXCI) was Fortune magazine’s fastest-growing company for 2011. In April, it announced it was buying rival pharmacy benefits manager Catalyst Health Solutions (NASDAQ:CHSI) for $4.4 billion, making the combined entity the second-largest independent PBM in the country with $13 billion in revenue and filling more than 200 million prescriptions annually. The deal is accretive to 2013 by at least 50 cents per share and should provide cost savings of $125 million within the first 24 months.

SXC is a company ready to play with the big boys.

Expect further consolidation in the PBM space. In this regard, SXC Health Solutions could be either a buyer or a seller in the future, depending on what kind of deals are available. About the same time SXC Health Solutions completed its deal for Catalyst last April, Express Scripts (NASDAQ:ESRX) was closing its $29.5 billion merger with Medco Health Solutions. The merged business fills approximately seven times the subscriptions annually.

Eventually, Express Scripts will come knocking at SXC’s door, and when it does, the deal will be for a lot more than $100 per share. In the meantime, expect SXCI to continue growing as it transforms the health care industry.

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