Premier Leaving Specialty Pharmacy Behind, Sells Business to CVS Health

Due to challenges in the specialty pharmacy landscape, Premier Inc. announced on Tuesday it is selling its specialty pharmacy business to ProCare Pharmacy LLC, a subsidiary of CVS Health Corporation, according to a press release.
 
With this decision, Premier intends to focus on its core supply chain, enterprise analytics, and performance improvement capabilities. Premier will receive $22.5 million for certain assets related to its specialty pharmacy business, plus up to an additional $20 million for inventory, according to the release. Premier’s specialty pharmacy business currently serves 367 hospitals across 66 health systems, consisting of Acro Pharmaceutical Services and Commcare Pharmacy.
 
“Although specialty pharmacy continues to be an important component in health care, today’s market dynamics are challenging and have resulted in new pressures across the industry,” Michael Alkire, president of Premier said in a statement. “Exiting the business better positions Premier to capitalize on our strengths and enhance our focus on core, growing business lines encompassing our supply chain, enterprise analytics, and performance capabilities.”
 
The move comes amid growing challenges in the pharmacy space, particularly with pharmacy benefit managers (PBMs) and direct and indirect remuneration (DIR) fees. Critics of DIR fees have pointed fingers at PBMs, arguing that the fees impede patient access to high-cost medications and put pharmacy businesses in jeopardy by reducing profits.
 
From the transaction, Premier anticipates an increase in the company’s consolidated non-GAAP adjusted EBITDA margin to approximately 45% for the full 2019 fiscal year, while reducing annual consolidated net revenue by approximately $470 million and increasing annual pre-tax income by approximately $6 million, according to the press release.
 
“We will be available to our current specialty pharmacy customers to help assist a smooth transition,” Susan Devore, chief executive offier of Premier, said in a statement. “One of the reasons we selected CVS Health, one of the nation’s leading health innovation companies, is because of its strong track record of providing outstanding patient care, and commitment to helping people on their path to better health.”
 
Premier’s current customers will be transitioned to ProCare Pharmacy. The deal is expected to close by June 30, 2019.  
 
Reference
 
Premier Inc. to Exit Specialty Pharmacy Business [news release]. Premier. https://www.premierinc.com/newsroom/press-releases/premier-inc-to-exit-specialty-pharmacy-business. Accessed May 9, 2019.



Stay up to date on the latest news in specialty pharmacy by getting Specialty Pharmacy Times in your mailbox or inbox for free!

Click here to sign up for free for the bi-monthly Specialty Pharmacy Times print journal delivered to your address.

Click here to sign up for our email newsletters delivered every Monday, Wednesday, and Friday, in addition to breaking news alerts.

Click here to follow us on Facebook. 

Click here to follow us on Twitter. 

Click here to join our LinkedIn group. 


Related Articles

Midazolam (Nayzilam) is indicated for seizures that are distinct from a patient's usual seizure pattern, in individuals age 12 years and older with epilepsy.
Matthew Malachowski, PharmD, BCPS, supervisor of specialty pharmacy services at UAB Health System, discusses how to optimize collaboration among the health care team to prepare for changes that occur throughout the course of a patient's care.
The convenience of home infusion for these products is very enticing for patients who require them and positioning home infusion pharmacies as partners with prescribers and patients is critical to help support this influx of new therapies.
Company Profile >
Industry Guide >
Market News >
Peer Exchange >
Conferences >
Subscribe >
Specialty Times Resources
About Us
Advertise
Careers
Contact Us
Terms & Conditions
Privacy
MJH Associates >
Pharmacy Times
OTCGuide
American Journal of Managed Care
Cure
MD Magazine
ONCLive
Targeted Oncology
Physicians' Education Resource
Pharmacy & Healthcare Communications, LLC
2 Clarke Drive
Suite 100
Cranbury, NJ 08512
P: 609-716-7777
F: 609-716-4747

Copyright Specialty Pharmacy Times 2006-2018
Pharmacy & Healthcare Communications, LLC. All Rights Reserved.
 

$vacMongoViewPlus$