Diversified Pharmaceutical Services

Diversified Pharmaceutical Services (DPS) was a pioneering pharmacy benefit management (PBM) company that played a significant role in the evolution of the healthcare services industry during the 1990s. Originally established as a subsidiary of United HealthCare, the company specialized in managing prescription drug benefits for employers and health plans through the use of formularies and clinical cost-control programs. In 1994, it was acquired by SmithKline Beecham for $2.3 billion, a landmark deal that reflected a trend of pharmaceutical manufacturers seeking to own the distribution and management channels for their products. However, following shifts in industry dynamics and regulatory scrutiny, the company was sold to Express Scripts in 1999 for $700 million. Today, the legacy operations of DPS are fully integrated into Express Scripts, which is now a subsidiary of Cigna.