Thursday, May 21, 2015

$10+ Billion Dollar Deal: CVS Health to Buy Pharma Giant Omnicare

 Anyone who's noticed the upsurge in M&A activity in the senior care industries will want to take special notice of today's news, with the announcement that CVS Health will spend $10.4 billion to buy Omnicare, thus giving CVS an even stronger pipeline for prescription drug distribution to the elderly.  (In 2006, CVS acquired Caremark Rx Inc. for a reported $21 billion.)

The Los Angeles Times reports:

The deal announced Thursday will give one of the nation's biggest pharmacy benefits managers national reach in dispensing prescription drugs to assisted living and skilled nursing homes, long-term care facilities, hospitals and other health care providers. Omnicare's long-term care business operates in 47 states and the District of Columbia. With more people entering assisted-living residences as the U.S. population ages, CVS Health says there is a "substantial growth opportunity" for companies serving those patients.

 

Cincinnati's Omnicare also provides pharmacy consulting and runs another segment that provides specialty pharmacy services. Specialty drugs are complex medications that treat certain forms of cancer or hepatitis C, among other conditions. They often represent treatment breakthroughs but can cost considerably more than other prescriptions. Use of these drugs is climbing, and insurers and employers are looking for help containing that cost.

This deal should keep a lot of lawyers busy! From The American Lawyer, news of four major law firms involved in the latest CVS acquisition.

UPDATE:  Here's an interesting editorial observation from an industry observer, describing Omnicare as the giant "lion of the jungle" who is now being gobbled up by giant CVS as the T-Rex.  Amusing, but apt, metaphors and observations about the potential implications for the public.

https://lawprofessors.typepad.com/elder_law/2015/05/10-billion-dollar-deal-cvs-health-to-buy-pharma-giant-omnicare.html

Consumer Information, Current Affairs, Health Care/Long Term Care, Medicare | Permalink

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