Option Care positions itself as ‘partner of choice’

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Friday, March 22, 2019

DENVER, Colo., and BANNOCKBURN, Ill. – Option Care CEO John Rademacher says its merger with BioScrip will create a “powerful, independent platform” in the growing $100 million infusion market.

“Combining each company’s unique assets and leading product portfolios will create a powerful, independent platform that will enable delivery of high-quality, cost effective solutions to providers across the country and help facilitate the introduction of innovative new therapies to the market place,” said Rademacher. “We look forward to harnessing the strengths of both of our organizations and industry-leading teams to drive long-term value for all stakeholders.”

The companies announced the merger March 15. Under the terms of the agreement, BioScrip will issue new shares to Option Care, which is owned by investment funds affiliated with Madison Dearborn Partners and Walgreens Boots Alliance, in an all-stock transaction. Upon completion of the transaction, MDP and WBA will own about 80% of the combined company, with BioScrip shareholders holding the remainder.

The combined companies cover 96% of the U.S. population with facilities in 46 states and the ability to serve all 50 states—something neither company could do alone, says Rademacher.

“Due to our scale, we will be positioned as the partner of choice for pharmaceutical manufacturers seeking innovative distribution channels and patient support models to access the market,” he said.

There are no immediate plans to fold BioScrip under the Option Care brand, says Rademacher.

“There is substantial brand equity with both organizations and we will be working with BioScrip to ensure we have the right branding post-close to represent the significant combined value we bring to the marketplace,” he said.

The deal likely positions the combined company as the No. 2 player in the market, after Coram CVS, say analysts.

“This continues the trend that the large pharmaceutical providers are getting really, really big,” said Pat Clifford, managing director with The Braff Group.

Walgreens acquired Option Care for $850 million in 2007, and sold it to MDP, which took it private, in early 2015.

Rademacher and Option Care CFO Mike Shapiro will lead the combined company.

Longtime home infusion industry exec Dan Greenleaf, who was brought onboard as president and CEO at BioScrip in 2016 when it acquired Home Solutions, will serve as special advisor to the board of directors.