CVS Health is expanding its pharmaceutical stronghold with the $10.4 billion purchase of Omnicare.
CVS is offering $98 a share in cash for pharmacy-services provider Omnicare in a deal valued at $12.7 billion, including $2.3 billion in debt, reports the Wall Street Journal. CVS and Omnicare shares were up 1.5% and 1.2% respectively with the announcement.
The acquisition will give CVS a wider platform to distribute prescriptions in assisted-living and long term care facilities. More than a fourth of Omnicare’s total revenue comes from a focus in high-price drugs for a small patient population. Omnicare’s revenue was up 20% in 2014, hitting $1.67 billion.
The CVS move is the latest consolidation in the healthcare world. United Health Group announced an acquisition of pharmacy-benefit manager Catamaran Corp. in March. Rite Aid Corp. agreed to purchase pharmacy-benefit manager Envision Pharmaceutical Services in February.
The CVS deal is expected to close at the end of the year.
Photo: Mike Mozart via Flickr.