BioScrip Inc. saw overall revenue and pharmacy services sales rise for its fiscal 2010 fourth quarter and full year but posted a net loss in both periods.


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Sales gain, earnings slip at BioScrip

March 11th, 2011

ELMSFORD, N.Y. – BioScrip Inc. saw overall revenue and pharmacy services sales rise for its fiscal 2010 fourth quarter and full year but posted a net loss in both periods.

The company said Friday that total sales for the fourth quarter ended Dec. 31, 2010, climbed 31.9% year over year to $450.4 million, mainly as a result of its acquisition of Critical Homecare Solutions (CHS), a home infusion and nursing provider, about a year ago.

Pharmacy services revenue for the fourth quarter rose 12.2% to $337.8 million, while infusion/home health services sales jumped 177.3% to $112.6 million during the period. BioScrip said that excluding CHS, infusion/home health services revenue increased 6.3%.

The net loss for the 2010 fourth quarter was $67.1 million, or $1.25 per share, compared with net income of $40.7 million, or 99 cents per diluted share, a year earlier, according to BioScrip.

For the full 2010 fiscal year, revenue rose 23.3% to more than $1.6 billion. Pharmacy services sales were up 6.8% year over year to $1.3 billion, and infusion/home health services revenue surged 154.5% to $377.2 million. Excluding the CHS business, infusion/home health services sales gained 14.7% for the year, according to BioScrip.

The company reported a 2010 net loss of $69.1 million, or $1.37 per diluted share, versus net earnings of $54.1 million, or $1.36 per diluted share, a year ago.

"2010 was a challenging year for BioScrip," stated president and chief executive officer Rick Smith, who took the helm as BioScrip CEO on Jan. 1. "During the year, revenue and margins were impacted by pricing concessions on various specialty drugs, reimbursement pressures, the new industrywide AWP [average wholesale price] standard and the overall impact of the weak economic environment. As a result, we commenced a strategic assessment of our business lines and overhead structure to position BioScrip for the future."

Smith noted that CHS has been seamlessly integrated. "Through this acquisition, we enhanced our competitive position in infusion and home health services, giving us a foundation to expand our national footprint by increasing the number of our direct managed care relationships and solidifying those that already existed," he explained. "As a result, BioScrip has greater access to a larger patient population from which to grow. We are entering 2011 with an enhanced strategic focus and have recently implemented initiatives to materially lower our corporate cost structure. We believe there are significant opportunities for BioScrip to improve operating performance and cash flow generation.”

Also during 2010, BioScrip acquired the pharmacy business of drugstore.com and became the online retailer's prescription drug service provider.

Based in Elmsford, N.Y., BioScrip provides retail and specialty pharmacy services along with pharmacy benefit management, home infusion and other health care services. It operates a network of 31 community retail pharmacies in 16 states and the District of Columbia.

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