Option Care credits new therapies, infusion suites for growth

BANNOCKBURN, Ill. – Option Care Health recorded its second straight quarter of “high-teens growth” for its chronic therapy portfolio and sees ongoing opportunity in the $100 billion market, says CEO John Rademacher. 

“We did have some new therapies that were introduced that we continue to see traction on moving forward,” he said on a recent call to discuss the company’s third quarter earnings. “I think, as we have defined the market, it's $100 billion of infused drugs that is available. We do think that there's an opportunity for the part of the pie that is serviced by home infusion to continue to expand.” 

Overall, Option Care saw net revenue growth of 14% for the third quarter of 2021, with chronic therapies representing approximately 70% of that growth, driven by new infusible drugs and increased utilization of infusion suites, which Rademacher is “bullish” on.  

The company previously announced plans to open 10 to 15 new standalone infusion suites by year-end. 

“It also gives us the confidence to launch and support newer therapies on the chronic side where the patients are more ambulatory,” said Mike Shapiro, CFO. “Some of the new therapies that have been advertised on TV, like Ocrevus, Tepezza and Stelara – those patient cohorts for new growing therapies are accommodated quite well in a suite setting. So just a very good arrow in the quiver for driving growth going forward.” 

‘Not immune to pressure’ 

Like other companies across the health care continuum, Option Care continues to grapple with supply chain constraints and a tight labor market set against the backdrop of the ongoing public health emergency, but the company plans to stay “active and proactive,” says Rademacher. 

“We’re going to continue to utilize the investments we've made into our technology, into our facilities and into the expansion of our footprint to help to mitigate and offset some of the pressures that we'll feel from wage inflation and/or other inflation in the marketplace like gasoline and medical supplies that could also feel some of the pressures of inflation,” he said. 

Looking past the PHE, Option Care will continue to work with other home infusion stakeholders to “beat the drum” for fair Medicare reimbursement, says Rademacher. 

“I mean it is frustrating, I think, for everyone involved, knowing that we're on the right side of that conversation in offering high-quality care at appropriate cost in a setting in which patients want to receive their care,” he said. “And the Medicare beneficiaries, especially through the COVID pandemic, were the most vulnerable (and) had the least access to care in a setting that would have helped to isolate them from exposure to COVID.”