WOONSOCKET, R.I. — CVS Caremark is looking to bolster its specialty pharmacy offerings by acquiring Coram, the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group for approximately $2.1 billion.
Coram provides infusion therapies and nutrition services to more than 20,000 patients each month. Coram cares for patients primarily through home infusion as well as a national network of more than 85 locations, including more than 65 ambulatory infusion suites.
"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. Our comprehensive services will enable us to streamline care management for patients as well as their physicians, leading to better health outcomes while avoiding unnecessary costs,” stated Jon Roberts, president of CVS Caremark Pharmacy Services.
Costs related to infusion of specialty medications may be covered through the medical or pharmacy benefit, depending on the site of care. CVS Caremark's approach to specialty pharmacy is to bring the most complete set of services to clients and patients, including new approaches to improve management of specialty pharmacy costs that are covered by the medical benefit as well as specialty pharmacy costs that are covered by the pharmacy benefit.
Infused therapies for the treatment of acute and chronic conditions (such as immune deficiencies, rheumatoid arthritis, multiple sclerosis and nutritional deficiencies) can be administered in many settings — including hospitals, physician's offices, infusion centers and patients' homes. However, costs related to where the drug is administered can vary significantly. A CVS Caremark analysis demonstrates that providing infusion services in the home or an ambulatory setting are by far the most cost-effective sites of service.
Coram is expected to generate approximately $1.4 billion in revenues during the first twelve months following the close of the deal.
Including one-time transaction and integration costs, the transaction is expected to have an immaterial impact on CVS Caremark's overall financial results in 2014. The transaction is expected to add 3 cents to 5 cents to the company's adjusted EPS in 2015, the first full year following the close of the deal. The deal is subject to customary closing conditions, including necessary regulatory approvals, and is expected to close by the end of the first quarter of 2014.