Wednesday, November 27, 2013
WOONSOCKET, R.I. (Nov. 27, 2013—CVS Caremark announced it has entered into an agreement to acquire Coram LLC ("Coram"), the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group Inc. for approximately $2.1 billion. Coram is one of the nation's largest providers of comprehensive infusion services, providing infusion therapies and nutrition services to more than 20,000 patients each month. Coram cares for patients primarily through home infusion as well as a national network of more than 85 locations, including more than 65 ambulatory infusion suites. President of CVS Caremark Pharmacy Services, Jon Roberts said, "Bringing together CVS Caremark's unique range of specialty pharmacy services with Coram's infusion capabilities will expand our competitive offerings in the specialty arena. Infusion will be a valuable component of our broad specialty pharmacy offering going forward. Our comprehensive services will enable us to streamline care management for patients as well as their physicians, leading to better health outcomes while avoiding unnecessary costs." Costs related to infusion of specialty medications may be covered through the medical or pharmacy benefit, depending on the site of care. CVS Caremark's approach to specialty pharmacy is to bring the most complete set of services to clients and patients, including new approaches to improve management of specialty pharmacy costs that are covered by the medical benefit as well as specialty pharmacy costs that are covered by the pharmacy benefit. "CVS Caremark and Coram share a mutual commitment to provide patients with quality care," said John G. Figueroa, Chief Executive Officer of Coram LLC and Chairman of the Board of Directors for Apria Healthcare Group. "Coram has a demonstrated track record of providing access to infusion services delivered by experienced and knowledgeable clinical staff." The acquisition is consistent with CVS Caremark's goal of investing in core businesses that help drive growth. Coram is expected to generate approximately $1.4 billion in revenues during the first twelve months following the close of the deal. Including one-time transaction and integration costs, the transaction is expected to have an immaterial impact on CVS Caremark's overall financial results in 2014. The transaction is expected to close by the end of the first quarter of 2014.