Abarca Health and LucyRx announced a strategic combination to create a modern independent pharmacy benefit manager designed to serve commercial and government clients at scale.
The combined company will provide prescription services to more than 9 million members across the United States.
Abarca and LucyRx said the combination comes as the PBM market faces increased regulatory scrutiny, rising pressure from high-cost specialty drugs and GLP-1s, and growing client demand for more flexible, accountable, and affordable pharmacy benefit models.
The companies said the combined platform will bring together Abarca’s technology foundation and government program expertise with LucyRx’s clinical capabilities, employer market presence, and specialty care network.
Abarca’s Darwin Healthcare Intelligence platform will serve as a core technology foundation for the combined organization. The platform is designed to support diverse payer needs, coordinate care, lower benefit and administrative costs, and provide more choice for clients and members.
LucyRx will contribute its clinical capabilities, Connected Specialty Care Network, and experience serving employers, TPAs, and labor groups nationwide.
The companies said clients and members will experience no disruption during the transaction process. Day-to-day operations, account relationships, responsiveness, and service standards are expected to continue under the same teams.
Both brands will remain in place. At closing, Abarca Health and LucyRx will operate as wholly owned subsidiaries of Healthcare Revolution Partners.
Each company will remain focused on its core markets. LucyRx will continue serving employers and TPAs, while Abarca will continue focusing on health plans and government programs.
Leadership will remain unchanged, with David Blair continuing as CEO of LucyRx and Jason Borschow continuing as CEO of Abarca Health. Both executives will join Healthcare Revolution Partners as Co-Chairs at closing.
The transaction is subject to regulatory approvals and customary closing conditions. The companies are expected to remain independently owned and operated until the transaction closes, which is expected in the third quarter of 2026.
Morgan Stanley is serving as financial advisor to Abarca Health. Pietrantoni Mendez & Alvarez is serving as lead legal counsel, and Axinn Veltrop & Harkrider is serving as regulatory counsel to Abarca Health.
Great Meadows Management is serving as lead financial advisor to LucyRx. Kirkland & Ellis and Mintz are serving as legal counsel to LucyRx.
KEY QUOTES:
“Leveraging our combined scale, technology, and track record, we will accelerate the healthcare revolution Abarca started more than 20 years ago. Together, we will deliver a trusted operating foundation, tailored customer experiences powered by best-in-class technology, and total-cost-of-care savings anchored in putting patients first.”
David Blair, Chief Executive Officer of LucyRx
“LucyRx shares our vision of making healthcare more seamless and personalized for everyone. We look forward to leveraging LucyRx’s clinical capabilities, Connected Specialty Care Network, and expertise serving employers and labor groups nationwide to deepen our service offerings and accelerate our entry into new market segments.”
Jason Borschow, Chief Executive Officer of Abarca Health
“We are united by the belief that, by working together, we will make healthcare seamless and personalized for everyone.”
David Blair, Chief Executive Officer of LucyRx, and Jason Borschow, Chief Executive Officer of Abarca Health
