Morning Briefing
Summaries of health policy coverage from major news organizations
CVS To Buy Omnicare In Bid To Expand Senior Care Business
The Wall Street Journal: CVS To Buy Drug Provider For $10.4 Billion
In a bid to strengthen its foothold as a dispenser of expensive prescription drugs, CVS Health Corp. agreed Thursday to pay $10.4 billion to acquire Omnicare Inc. Omnicare is a growing player in the fulfillment of prescriptions for diseases like cancer and multiple sclerosis, where the per-patient cost of medications can range from $50,000 to $100,000 annually. (Walker, 5/21)
Reuters: CVS To Expand Pharmacy Business With $10B Omnicare Buy
Drugstore operator CVS Health Corp (CVS.N) said Thursday it will spend $10.1 billion to buy Omnicare Inc (OCR.N), a company that supplies prescription medicines to nursing, assisted living and other healthcare facilities. The move gives CVS, the second-largest U.S. drugstore operator, access to the older, sicker U.S. population and builds on its specialty pharmacy, which provides drugs to people with expensive chronic conditions such as rheumatoid arthritis. (5/21)
The New York Times: CVS Health Agrees To Buy Omnicare In $12.7 Billion Deal
As the American population gets older, pharmacies and other health care providers are increasingly positioning themselves to capitalize and serve the needs of this demographic. This group often needs drugs for chronic conditions like diabetes and heart disease, as well as lifesaving medications for sudden conditions like infections or pneumonia. (Thomas and Bray, 5/21)
The Associated Press: CVS Paying $10.4B In Cash For Drug Distributor Omnicare
CVS Health will pay more than $10 billion for pharmaceutical distributor Omnicare in a deal primed to feed its fast-growing specialty drug business and tap a lucrative and growing market: care for the elderly. The acquisition announced Thursday will give one of the biggest U.S. pharmacy benefits managers national reach in dispensing prescription drugs to assisted living and skilled nursing homes, long-term care facilities, hospitals and other care providers. Omnicare's long-term care business operates in 47 states and the District of Columbia. (Murphy, 4/21)
USA Today: CVS Buys Omnicare For $12.7B To Expand Senior Care Business
The deal will dramatically add to CVS' revenue next year, and integrating the companies also will lead to savings in purchasing and other operations, CVS said. It will contribute about 20 cents to CVS' earnings per share next year, after excluding one-time transaction-related costs. (Yu, 5/21)
