Advanced Care Scripts (ACS), a part of
) Specialty Care Group, has been recently included in the limited
distribution network for Lundbeck's Xenazine (tetrabenazine).
Xenazine is the only treatment for chorea which has been
approved by the U.S. Food and Drug Administration (FDA). Chorea is
a primary indication of Huntington's disease, as clinical studies
have revealed that roughly 90% of those who suffer from chorea are
affected by Huntington's disease.
Management at Omnicare's Specialty Care Group is enthused about
its addition to the limited distribution network for the
contemporary drug. The company is also the exclusive provider of
Xenazine in the long-term care channel. The business model of the
Specialty Care Group is best suited to dispense a specialty drug
like Xenazine via its specialty pharmacy, ACS, to the target
Revenues from the Specialty Care Group surged 25.7% year over
year to $330.1 million in the second quarter. Omnicare is focused
on exploiting new operating platforms to accelerate growth for the
Specialty Care Group.
Omnicare is a market leading provider of long-term care pharmacy
services and health care environment for individuals directly and
indirectly, through subsidiaries across North America. It competes
National Healthcare Corp
) in certain niche segments.
Omnicare's business model ensures that it is well placed to
sustain profitability in the long-run. Its performance in the most
recent quarter negated external pricing pressure and reimbursement
Moreover, generics coming to the market in the next few quarters
present a major opportunity due to the company's direct access to
manufacturers and current greater exposure to the institutional
pharmacy channel than in the past couple of years.
The stock currently retains a Zacks #1 Rank, which translates
into a short-term Strong Buy rating.
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