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CVS Caremark to Purchase Coram Infusion Business from Apria Healthcare, Expanding Specialty Pharmacy Offering
Wednesday, November 27, 2013
WOONSOCKET, R.I., Nov. 27, 2013 /PRNewswire/ -- CVS Caremark (NYSE: CVS) today announced it has entered into an agreement to acquire Coram LLC ("Coram"), the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group Inc. for approximately $2.1 billion. Coram is one of the nation's largest providers of comprehensive infusion services, providing infusion therapies and nutrition services to more than 20,000 patients each month. Coram cares for patients primarily through home infusion as well as a national network of more than 85 locations, including more than 65 ambulatory infusion suites.
President of CVS Caremark Pharmacy Services, Jon Roberts said, "Bringing together CVS Caremark's unique range of specialty pharmacy services with Coram's infusion capabilities will expand our competitive offerings in the specialty arena. Infusion will be a valuable component of our broad specialty pharmacy offering going forward. Our comprehensive services will enable us to streamline care management for patients as well as their physicians, leading to better health outcomes while avoiding unnecessary costs."
Costs related to infusion of specialty medications may be covered through the medical or pharmacy benefit, depending on the site of care. CVS Caremark's approach to specialty pharmacy is to bring the most complete set of services to clients and patients, including new approaches to improve management of specialty pharmacy costs that are covered by the medical benefit as well as specialty pharmacy costs that are covered by the pharmacy benefit.
Infused therapies for the treatment of acute and chronic conditions (such as immune deficiencies, rheumatoid arthritis, multiple sclerosis and nutritional deficiencies) can be administered in many settings - including hospitals, physician's offices, infusion centers and patients' homes. However, costs related to where the drug is administered can vary significantly. A CVS Caremark analysis demonstrates that providing infusion services in the home or an ambulatory setting are by far the most cost-effective sites of service.
"CVS Caremark and Coram share a mutual commitment to provide patients with quality care," said John G. Figueroa, Chief Executive Officer of Coram LLC and Chairman of the Board of Directors for Apria Healthcare Group. "Coram has a demonstrated track record of providing access to infusion services delivered by experienced and knowledgeable clinical staff."
The acquisition is consistent with CVS Caremark's goal of investing in core businesses that help drive growth. Coram is expected to generate approximately $1.4 billion in revenues during the first twelve months following the close of the deal. Including one-time transaction and integration costs, the transaction is expected to have an immaterial impact on CVS Caremark's overall financial results in 2014. The transaction is expected to add $0.03 to $0.05 cents to the Company's Adjusted Earnings Per Share in 2015, the first full year following the close of the deal. The deal is subject to customary closing conditions, including necessary regulatory approvals, and is expected to close by the end of the first quarter of 2014.
Barclays served as the Company's financial advisor on the transaction, while Sullivan and Cromwell LLP served as legal advisor and Dechert LLP served as legal advisor from an anti-trust perspective.
About CVS Caremark
CVS Caremark is dedicated to helping people on their path to better health as the largest integrated pharmacy company in the United States. Through the company's more than 7,600 CVS/pharmacy stores; its leading pharmacy benefit manager serving more than 60 million plan members; and its retail health clinic system, the largest in the nation with more than 750 MinuteClinic locations, it is a market leader in mail order, retail and specialty pharmacy, retail clinics, and Medicare Part D Prescription Drug Plans. As a pharmacy innovation company with an unmatched breadth of capabilities, CVS Caremark continually strives to improve health and lower costs by developing new approaches such as its unique Pharmacy Advisor program that helps people with chronic diseases such as diabetes obtain and stay on their medications. Find more information about how CVS Caremark is reinventing pharmacy for better health at info.cvscaremark.com.
This press release contains certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company strongly recommends that you become familiar with the specific risks and uncertainties outlined under the Risk Factors section in our Annual Report on Form 10-K for the year ended December 31, 2012 and under the section entitled "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Quarterly Report on Form 10-Q.
SOURCE CVS Caremark