BioScrip brings in turnaround team as losses mount
ELMSFORD, N.Y. – BioScrip has tapped several new execs and beefed up its board of directors as it repositions itself as a pure play home infusion provider.
“(BioScrip) is a company with significant potential and a strong core business but needs rapid and effective changes to its cost structure,” said Carter Pate, director, during an Aug. 10 earnings call. “We’ve identified and engaged a leadership that we are confident will be able to implement the board’s plan.”
Since March, four new members have been appointed to the board of directors, for a total of seven. Other top-level changes include the appointment of Chris Luthin as COO in August; Britt Jeffcoat as controller and chief accounting officer in May; and Jeffrey Kreger as CFO in April.
BioScrip has also formed a financial improvement committee that will be chaired by Pate.
BioScrip reported second quarter revenues of $247 million for its infusion services segment, an increase of 7.1% compared to the same period in 2014. Overall revenues for the quarter were $262.4 million.
Net losses were $243.2 million for the quarter, compared to $18.6 million one year ago.
As part of its turnaround plans, BioScrip is exploring the sale of non-core assets, like the August sale of Pro Care Pharmacy Benefit Manager for $25 million in cash.
“We believe that sale is a positive outcome,” said Rick Smith, president and CEO. “We are pursuing the sale of other non-core business lines that have created a distraction to the original strategic plan.”
Other cost-cutting measures: reducing the workforce by 12% for a savings of $19 million; and consolidating corporate operations into its Eden Prairie, Minn., location.
“We expect to be a smaller, more focused organization with significantly improved profitability and better prospect for growth,” said Smith.