CVS completes acquisition of Apria's specialty infusion services, enteral nutrition unit Coram; move expands CVS's competitive offerings in specialty services

Cindy Allen

Cindy Allen

WOONSOCKET, Rhode Island , January 17, 2014 (press release) – Acquisition expands CVS Caremark competitive offerings in specialty services

CVS Caremark (CVS) today announced that it has completed the acquisition of Coram LLC ("Coram"), the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group Inc. Coram is one of the nation's largest providers of comprehensive infusion services, caring for approximately 165,000 patients annually. Coram has 4,600 employees, including 600 nurses, 350 pharmacists and 250 dietitians, operating primarily through 85 branch locations and six centers of excellence for patient intake.

(Logo: http://photos.prnewswire.com/prnh/20090226/NE75914LOGO)

"With the acquisition of Coram, we have expanded our competitive offerings in specialty services," said Jon Roberts, President of CVS Caremark Pharmacy Services. "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."

With Coram, CVS Caremark will have comprehensive resources to more effectively manage the cost of specialty drugs, including infused therapies, whether they are covered through the medical or the pharmacy benefit. For patients this means better clinical outcomes, while payors will see lower total health care costs.

The acquisition is consistent with CVS Caremark's goal of investing in core businesses that help drive growth. 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, as well as the interest associated with the $2 billion of senior notes issued to fund this transaction, the transaction is expected to have an immaterial impact on CVS Caremark's overall financial results in 2014. The transaction is expected to add $0.03 to $0.05 cents to the Company's Adjusted Earnings Per Share in 2015, the first full year following the close of the deal.

Barclays served as the Company's financial advisor on the transaction, while Sullivan and Cromwell LLP served as legal advisor, and Dechert LLP served as legal advisor from an anti-trust perspective.

About CVS Caremark
CVS Caremark is dedicated to helping people on their path to better health as the largest integrated pharmacy company in the United States. Through the company's more than 7,600 CVS/pharmacy stores; its leading pharmacy benefit manager serving more than 60 million plan members; and its retail health clinic system, the largest in the nation with more than 800 MinuteClinic locations, it is a market leader in mail order, retail and specialty pharmacy, retail clinics, and Medicare Part D Prescription Drug Plans. As a pharmacy innovation company with an unmatched breadth of capabilities, CVS Caremark continually strives to improve health and lower costs by developing new approaches such as its unique Pharmacy Advisor program that helps people with chronic diseases such as diabetes obtain and stay on their medications. Find more information about how CVS Caremark is reinventing pharmacy for better health at info.cvscaremark.com.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.