‘Disruptors’ put a dent in BioScrip’s earnings

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Friday, November 3, 2017

DENVER – Company officials at BioScrip blamed a second straight quarter of net revenue declines on several “disrupters,” both expected and unexpected.

The declines primarily stem fromBioScrip’s exit from a UnitedHealthcare contract and the double whammy of Hurricanes Harvey and Irma, said CEO Daniel Greenleaf, CEO, during a Nov. 2 earnings call.

“Disruption from the hurricanes and the UnitedHealthcare contract transition decreased revenue by an estimated $10 million during the quarter,” he said. “The hurricanes impacted 12 branch locations, which represents 25% of our branch count. We also experienced disruptions related to the transition of more than 5,500 UnitedHealthcare patients off our census to other providers.”

BioScrip completed its exit from the UnitedHealthcare contract Sept. 30.

The company reported net revenues of $198.7 million for the third quarter this year, down from $218.1 million for the second quarter this year. Net revenues were $224.5 million for the third quarter last year.

BioScrip reported a net loss of $12.4 million for the third quarter this year, compared to $11.1 million for the same period last year. It reported an adjusted EBITDA of $13 million, up from $10 million in the second quarter.

The company also updated full-year revenue guidance to a range of $805 million to $810 million for 2017.

Greenleaf said BioScrip grew its core product mix to 75% in the third quarter, with a goal of 85%.

“Our business is poised to take advantage of the significant opportunities that exist in today’s market,” said Greenleaf, who also marked his one-year anniversary since taking the reins in September 2016.