Premier, Inc., a leading healthcare improvement company, has agreed to acquire the national specialty pharmacy business of Lincare Holdings Inc., headquartered in Clearwater, FL. The $75 million acquisition includes Acro Pharmaceutical Services LLC and Community Pharmacy Services, LLC. Premier expects to fund the transaction with available cash or borrowings under its existing credit facility.
Lincare has disclosed that its specialty pharmacy business generated approximately $206 million in 2015 revenue. The transaction, projected to close by or before Sept. 30, is expected to be accretive to earnings in fiscal 2017.
“This acquisition will expand and diversify both our special pharmacy patient base and disease treatments,” said Durral R. Gilbert, president of Premier’s supply chain services segment. “The purchase will give us access to limited distribution drugs used for the treatment of oncology, multiple sclerosis and respiratory disease, and it will heighten our preferred specialty status with multiple payers. In addition, the acquisition will enable us to serve the growing needs of Medicaid patients in Arkansas and Mississippi, thanks to Acro’s locations in Philadelphia and Memphis Tenn.”
Specialty pharmacy, one of the fastest growing segments in healthcare, focuses on the long-term treatment of chronically ill patients, including those who suffer from cancer, multiple sclerosis, rheumatoid arthritis, hepatitis C and hemophilia. These patients require complex, costly therapies with special handling, administration and monitoring, as well as patient education and clinical management. Current trends suggest that specialty drug spending will total $400 billion by 2020, or about 9.1 percent of national health spending, according to the UnitedHealth Center for Health Reform.
“Premier is continuing to differentiate itself as we expand and integrate our specialty pharmacy services, providing more scale for our health system focused model,” said Susan DeVore, president and chief executive officer of Premier. “This comprehensive shared service approach enhances a health system’s ability to thrive in today’s alternative payment and care delivery environment. It decreases the growing challenges of specialty drug access and costs, and lessens the complexity of administering and caring for chronically ill patients.”
Acro operates in 50 states, while Community Pharmacy Services serves a 340B drug program in the Greater Philadelphia area. The companies will be integrated into Premier’s existing specialty pharmacy business as part of Premier’s supply chain services segment.