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CVS Caremark closes Coram infusion acquisition
January 17th, 2014
WOONSOCKET, R.I. – CVS Caremark Corp. has finalized its $2.1 billion deal to acquire Coram LLC, the specialty infusion services and enteral nutrition business of home health care provider Apria Healthcare Group.
CVS said Friday that the addition of Coram gives it comprehensive resources for more effectively managing the cost of specialty drugs, including infused therapies, whether they are covered through the medical or the pharmacy benefit.
That means better clinical outcomes for patients and lower overall costs of care for payors, the company noted.
"With the acquisition of Coram, we have expanded our competitive offerings in specialty services," Jon Roberts, president of CVS Caremark Pharmacy Services, said in a statement. "From a capabilities perspective, no other organization brings the range of specialty assets, the depth of experience and integration of care that the combination of CVS Caremark and Coram can deliver."
CVS announced the deal to buy Coram, one of the nation's largest providers of comprehensive infusion services, in late November. Coram cares for about 165,000 patients annually, and its 4,600 employees include 600 nurses, 350 pharmacists and 250 dietitians, operating primarily through 85 branch locations and six centers of excellence.
During the 12 months after the completion of the acquisition, Coram is expected to generate about $1.4 billion in revenue, according to CVS. The company said that, including one-time transaction and integration costs, plus the interest from the $2 billion of senior notes issued to fund the transaction, the deal is expected to have an immaterial impact on CVS Caremark's 2014 financial results. The transaction is slated to add 3 cents to 5 cents to the company's adjusted earnings per share in 2015, the first full year following the close of the deal.