Option Care is the Preferred Provider of Haemophilia Treatment
Following its recently-completed acquisition, Option Care Health BIOS announced that it has been selected as a preferred provider of factor drug products by Highmark health plan for the treatment and management of plan members, who are suffering haemophilia. The company will provide the highest-quality personalized care to help manage this complex and challenging condition of haemophilia.
This deal will be effective January 2020.
Brief on Haemophilia
Going by the Centers for Disease Control and Prevention’s definition, haemophilia is usually an inherited bleeding disorder causing improper blood clotting. Blood contains many proteins known as clotting factors that help stop profuse bleeding. People with hemophilia have low levels of either clotting factor VIII or factor IX.
Is the Deal Strategic?
Meanwhile, after the consolidation of BioScrip and legacy Option Care, the merged entity, Option Care Health, became the nation’s largest independent provider of home and alternate treatment site infusion therapy services. The company focuses on treating bleeding disorders and provides specialized intravenous (IV) infusion of clotting factors that control bleeding.
Option Care Health currently has access to all hemophilia factor treatments including those with limited distribution. The company runs a Bleeding Disorders (BD) program with certain care features, such as a patient benefit navigator with special Hemophilia Treatment Center (HTC) training.
Option Care Health expects this BD program to align with Highmark’s Hemophilia Member Care Program for streamlining its plan members’ care. Per the company, this is a step toward shifting from a hands-off specialty pharmacy model to a patient-centric one that it comprises.
The Highmark deal will therefore expand the company’s patient base and further solidify its footprint in alternative site infusion therapy.
Huge Home Infusion Market Prospect
Going by a Grand View Research report, the global home infusion therapy market size was valued at $22.2 billion in 2018 and is projected to see a CAGR of 7.2% by 2026. Major driving factors that can be attributed to this market’s growth are favorable governmental policies, technological changes, growing demand, rising market opportunities and cost reductions.
Share Price Performance
In the past six months, shares of Option Care Health have outperformed its industry. The stock has soared 52.4% against the 24.3% decline of the industry.
Zacks Rank & Stocks Worth a Look
Option Care Health currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Haemonetics Corporation HAE, NuVasive, Inc NUVA and ResMed RMD, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics has a projected long-term earnings growth rate of 13.5%.
NuVasive has an expected long-term earnings growth rate of 10.9%.
ResMed’s long-term earnings growth rate is estimated to be 12.9%.
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NuVasive, Inc. (NUVA): Free Stock Analysis Report
ResMed Inc. (RMD): Free Stock Analysis Report
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Option Care Health, Inc. (BIOS): Free Stock Analysis Report
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