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CVS Caremark to acquire Coram infusion for USD2.1 billion from Apria Healthcare Group
On Wednesday, CVS Caremark said in an announcement that it will be buying Apria Healthcare Group's Coram infusion business for USD2.1 billion.
CVS operates a pharmacy benefits management unit and a drugstore chain. It said in its statement that the addition of Coram in its business will add USD1.4 billion in revenues to the company's total revenues in the first year after the deal will be finalized, and a USD0.03 to USD0.05 per share to the company's adjusted earnings per share in 2015. CVS said the acquisition will be finalized in the first quarter of next year.
Coram is a provider of infusion therapies for treating acute and chronic ailments. Some of these ailments include immune deficiencies, rheumatoid arthritis, multiple sclerosis and nutritional deficiencies. Infusion therapy, as described in a Reuters article, is the administration of medicine via a catheter or a needle in cases wherein a patient's condition is too extreme to be treated by oral medication effectively.
Coram's infusion therapies see the company treating over 20,000 patients primarily at their homes each month. Coram also has over 85 infusion sites in its network.
CVS Caremark Pharmacy Services president Jonathan Roberts said in a statement, "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."
Coram LLC Chief Executive Officer and Chairman of the Board of Directors for Apria Healthcare Group John G. Figueroa said about the sale, "CVS Caremark and Coram share a mutual commitment to provide patients with quality care. Coram has a demonstrated track record of providing access to infusion services delivered by experienced and knowledgeable clinical staff."
CVS Caremark's financial adviser was Barclays, while Sullivan & Cromwell served as legal adviser. Dechert LLP was tapped as the legal advisor from an antitrust perspective.
It was not clear who had assisted Apria Healthcare Group regarding its exit from its Coram infusion business.