Infusion Therapy Firm BioScrip to Buy Rival Option Care

Infusion-therapy services company BioScrip (BIOS)  agreed to buy rival Option Care Enterprises, creating one of the largest independent home-therapy companies in the U.S.

Option Care is owned by investment funds affiliated with Madison Dearborn Partners and Walgreens Boots Alliance (WBA) .

On completion of the all-stock deal, MDP funds and WBA will own roughly 80% of the combined publicly traded company on a fully diluted basis, with current BioScrip shareholders holding the remainder, the companies said. Option Care CEO John Rademacher will lead the combined company.

“This is a compelling and complementary fit of two leading players in the U.S. infusion market,” BioScrip CEO Daniel Greenleaf said in a statement. “Our expanded reach and broader array of offerings provide a key competitive advantage at a time when the demand for home and alternate site infusion services continues to grow.”

Investors seemed to agree, pushing up BioScrip stock more than 20% in premarket trading on the Nasdaq Friday. The shares were up 22.9%, or 80 cents, at $3.49. 

Bioscrip leaders attended catheter securement training at the NHIA conference in Orlando.#bioscripmatters #NHIA #healthcare #homeinfusion #care #orlando #catheter #training pic.twitter.com/hbWh57wyVt

— BioScrip (@BioScripInc) March 11, 2019

Separately, BioScrip on Friday reported a fiscal fourth-quarter loss from continuing operations of $15.4 million, or 12 cents a share, compared to $15.1 million, or 14 cents, in the prior year. Net sales were $183.6 million compared to $178.5 million in the fourth quarter of 2017.

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