) closed the acquisition of Ohio-based CarePoint Partners
Holdings and its subsidiaries. Earlier in June, BioScrip had
inked a definitive agreement to take over CarePoint Partners in a
bid to expand its home infusion business.
CarePoint Partners is a provider of home and alternate-site
infusion therapy for complex, acute and chronic illness across
the U.S. It has 28 service sites in nine states, concentrated in
the Gulf Coast and East Coast regions. As a leading national
provider of infusion therapy to about 20,500 patients on an
annual basis, CarePoint Partners expects to generate annual
revenues of $160 million.
This lucrative acquisition is expected to leverage BioScrip's
top-line. It should also boost the company's return on capital
(ROC) going forward. Moreover, post integration (12-15 months),
the acquisition is expected to improve the long-term growth
prospects of the company.
Following the acquisition, BioScrip will serve over 0.1
million patients across the U.S. with its home infusion services.
The company also expects to improve standards of patient care. As
per management, the deal will support BioScrip in achieving its
growth targets in the long term.
According to the company, the acquisition is well aligned with
BioScrip's strategy to develop a solid foothold in the domestic
market for its mainstay infusion business. Further, the recent
acquisition only reinforces the fact that BioScrip keeps a keen
eye out for strategic takeovers from time to time, the last one
) majority-owned subsidiary HomeChoice Partners in Feb,
We expect these acquisitions to allow market expansion and
support consolidation efforts in a highly fragmented industry.
These acquisitions should boost BioScrip's long-term growth
On the tepid side, BioScrip continues to battle widening
losses over the past few quarters. The company also faces a tough
competitive landscape with larger players with deeper
Currently, the stock carries a Zacks Rank #3 (Hold). While we
remain on the sidelines for BioScrip, other stocks such as
GNC Holdings Inc.
), carrying Zacks Rank #2 (Buy) warrant a look.
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