BioScrip restructures credit

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Wednesday, December 14, 2016

DENVER – BioScrip has announced a plan to increase its liquidity.

The home infusion and home care provider has proposed an amendment to its original credit agreement that would restructure an existing revolving credit facility, providing immediate access to $15 million.

BioScrip has suffered losses in recent quarters. Net revenues for the third quarter of 2016 were $224.5 million, a decrease of 9.2% from a year ago. Net losses from continuing operations were $11.1 million vs. $24.5 million. 

The company has shaken up its executive team, installing Daniel Greenleaf as its new president and CEO. Greenleaf previously held positions at Home Solutions, which BioScrip acquired in September, and Coram. At both companies, he is credited with turning around an underperforming company.

“As stated on our third quarter earnings conference call, BioScrip is in the beginning stages of implementing an 18 to 24-month turnaround strategy and is focused on optimizing operational efficiencies to drive profitable growth and deliver on our financial commitments,” said Greenleaf, in a statement.

For the fourth quarter of 2016, the company is performing better than expected, Greenleaf said, with revenues projected to be at the high end of previously announced ranges of $232 million to $239 million.

BioScrip also issued a statement on the potential impact of the 21st Century Cures Act, signed into law Dec. 13, which will impose an average sales price model on Part B infusion drugs effective Jan. 1, 2017.

“The company estimates that the Cures Act as written will result in reimbursement reductions impacting therapies representing approximately 3% to 4% of total current revenue,” the statement reads.“While we are disappointed with the passage of the Act and the potential implications for our Medicare patients, we are confident in our business model and in the ability of our team to reach a level of financial productivity that is more reflective of the true value of the company.”