CVS buys Coram
LAKE FOREST, Calif. – CVS Caremark has agreed to acquire Apria’s home infusion business, Coram, for $2.1 billion, the companies announced today.
“CVS Caremark and Coram share a mutual commitment to provide patients with quality care,” said John Figueroa, Coram CEO.
Apria acquired Denver-based Coram for $350 million in 2007. Today, Coram has more than 4,500 employees and serves more than 20,000 patients each month through 85 locations. Third quarter revenues for the division, reported Nov. 12, were $975.3 million—about 53% of Apria’s overall revenues.
“Infusion will be a valuable component of our broad specialty pharmacy offering going forward,” said Jon Roberts, president of CVS Caremark Pharmacy Services. “Our comprehensive services will allow us to streamline care management for patients as well as their physicians.”
The deal, which is expected to close by the end of first quarter 2014, is one of the largest of its kind. The only other one to come close: Walgreen’s acquisition of OptionCare in 2007 for $850 million.
Unlike the HME and respiratory markets, the home infusion market has enjoyed relative stability, thanks to steady reimbursement and proven cost-effectiveness. Although the therapy was included in the Round 1 re-compete of competitive bidding, analysts have said they don’t expect that to have too much of an impact. Coram accepted infusion contracts in all nine competitive bid areas.
Apria plans to focus on its core respiratory business.
“The Apria Healthcare respiratory business will continue to operate as a standalone business in the future, and the company is focused on executing its strategic plan for the future,” said Lisa Getson, executive vice president, in an email to HME News.