BioScrip revenues are down, but core product mix is up

DENVER - BioScrip's net revenues decreased 6.2% in the second quarter of 2017, but CEO Dan Greenleaf said in an earnings call the company was hitting targets.

BioScrip reported net revenues of $218.1 million for the second quarter of 2017 compared to $232.4 million for the same period a year ago. Net loss was $29.2 million vs. $8.2 million.

Still, BioScrip increased its core product mix to 73.1%, compared to 60.3% a year ago, with an ultimate goal of 85%.

“Overall, our turnaround plan is on schedule,” Greenleaf said. “Our revenues of $218.1 million reflect our team's focus on growing core revenues and shedding our less profitable non-core therapies, including less revenue from UnitedHealthcare this quarter as compared to the first quarter.”

BioScrip is terminating its UnitedHealthcare contract, with the exception of nutrition, by Sept. 30, 2017, and is executing a transition plan, says Greenleaf.

Not helping revenues was the 21^st Century Cures Act, which reduced Medicare reimbursement for certain Part B infusion drugs on Jan. 1, without creating a payment for infusion services until 2021. The company has previously stated the act would negatively impact its earnings by $24 million in 2017.

Greenleaf lauded the recently passed Medicare Part B Improvement Act of 2017, which creates a transitional payment for infusion services starting in 2019.

“This bill is an important milestone toward improving Medicare patient access to home infusion therapies,” he said. “We have continued to work with the National Home Infusion Association and others to increase awareness in Washington, D.C., of the unintended implications of the Cures Act on the critically ill patients relying on the impacted therapies.”

For the six months ended June 30, BioScrip reported net revenues of $435.9 million this year compared to $470.9 million last year. Net loss was $48.6 million vs. $17.8 million. EBITDA, however, was $10 million for the second quarter, nearly double the first quarter.