BioScrip: A Hammered Stock But A Potential Buy Under $10
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Nov. 27, 2013, 11:00 AM
- CVS Caremark's (CVS) agreement to acquire Coram, the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group, for approximately $2.1B will strengthen its position relative to market leader Walgreens (WAG), Wells Fargo says.
- "This transaction should strengthen CVS' positioning in the specialty pharmaceutical business, which we believe is increasingly critical in driving growth for the PBMs, particularly as we believe historical sources of earnings growth taper (including generics and mail order). Walgreens is currently the market leader in the specialty pharmacy business, followed closely by CVS and the acquisition of Coram should strengthen CVS' positioning."
- "Prior to Caremark being solely a PBM, it was one of the largest home infusion therapy companies in the country, but Caremark sold these assets in 1995 to Coram for about $310M in cash and preferred stock, with estimated revenues of under $500M. Today's announcement will bring back this business despite the now resolved litigated history regarding the original sale, though Coram is now considerably larger and includes ambulatory infusion sites."
- Coram peer BioScrip (BIOS) is +20% today, a move that appears directly related to the acquisition of Coram.
Nov. 27, 2013, 10:13 AM
- BioScrip (BIOS +18.5%) shares surge following renewed M&A speculation on the back of this morning's CVS acquisition of Coram for $2.1B.
- Market chatter is referencing Jefferies' opinion the BioScrip could realistically fetch $12-$14/share, an 83% premium from the current price.
- The stock has been downtrodden as of late, with shares having fallen 66.5% into yesterday's close from June highs.
Jun. 17, 2013, 8:36 AMBioScrip (BIOS) agrees to acquire fellow home-infusion company CarePoint Partners for $223M in cash, or a net $178M when taking into account a $45M future tax benefit that's related to the deal. CarePoint is expected to generate $160M in annual revenues and will add 20,500 patients a year to BioScrip's roster, giving the latter a total of 100,000 patients. (PR) | Comment!
Dec. 13, 2012, 12:46 PMBioScrip (BIOS +1.7%) moves up after announcing earlier today that it was buying infusion pharmacy services provider HomeChoice Partners for $70M in cash from DaVita HealthCare Partners (DVA -0.3%). The deal is part of a larger effort by BIOS to expand its national footprint. In February, it sold its specialty and mail-service pharmacy operations to Walgreen (WAG)for $225M, saying it wanted to turn its focus onto building its alternate-site infusion business. | Comment!
Feb. 2, 2012, 8:13 AMMore on the WAG-BIOS deal (previous): BioScrip (BIOS) will come out of the deal considerably leaner, but will still have its infusion, home health, pharmacy benefit management and cash card businesses. The firm also say that it will continue to service its infusion patient base and managed care customers through its pharmacies. Shares of BIOS are currently halted. | Comment!
Feb. 2, 2012, 8:09 AMWalgreen (WAG) snaps up assets of BioScrip (BIOS) including community specialty pharmacies and centralized specialty and mail service pharmacy businesses for a total deal value of $225M. The agreement calls for an additional $60M payment depending on if Walgreen retains some of the lines of business. Shares of WAG -0.3% premarket, BIOS halted. | Comment!
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BioScrip Inc provides home infusion & other home healthcare services to patients, physicians, hospitals, healthcare payors & pharmaceutical manufacturers to provide clinical management solutions & delivers cost-effective access to medications.
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