Option Care announced May 6 it had paid $18.5 million for Houston-based BioCureRx, a regional provider of certain chronic care therapies.
“While limited in size, the BioCure transaction signifies our appetite to become more active on the M&A front,” said Mike Shapiro, CFO, on a recent earnings call. “And we will be thoughtful and intentional in our efforts going forward. We are confident that we can execute our M&A strategy concurrent efforts to further improve our leverage profile, given our cash flow generation and access to capital.”
Option Care also invested in the Chicago area, opening its new Care Management Center, which includes a regional compounding center and Chronic Center of Excellence.
“Chicago is a big market for us,” said John Rademacher, CEO. “With the patient population that we serve and can continue to grow, we’re really excited about that facility.”
Additionally, Option Care opened a new facility in Hudson, Ohio, to serve the northern Ohio market and added two new therapies to its portfolio.
The company reported revenue of $759.2 million for the first quarter of 2021, an increase of 7.6%, driven mainly by low double-digit chronic therapy growth as referrals approached pre-pandemic levels. Acute revenue growth remained relatively flat after the impact of average sales price declines in certain therapies, including antibiotics, said officials.
With markets opening back up, Option Care will monitor activity on a regional basis, says Rademacher.
“I will caution that it is market dependent,” he said. “Some areas are opening faster than others. And where we see spikes, there certainly are implications from that perspective. But overall, we feel good that we’re starting to see those trends and those volumes moving in the right direction.”
The M&A market for healthcare companies continues to strengthen in 2022 ahead of projected increases in US capital gains taxes. There is unprecedented capital in market, the lowest interest rates in US history and strong acquirer motivations for high quality healthcare companies. Across the continuum of care, buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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