CVS is acquiring Omnicare nursing-home pharmacy for $12.7 billion. Omnicare delivers drugs to senior-living facilities and helps manage residents’ medications.
The deal positions CVS—the largest US retailer of prescription drugs—front and center in the explosive senior healthcare facilities market.
CVS will pay $98 per share for Omnicare, a 6.1 percent premium to its closing price Wednesday and the deal includes about $2.3 billion in debt, as reported by Bloomberg.
The deal is strategically savvy as sales from CVS’s pharmacy benefits management business jumped 18 percent to $24 billion during the first quarter and specialty drug revenue rose 46 percent.
On the sustainability front, CVS is showing top-line performance as well, helping cities safely dispose of old medications.
According to a State of Washington report, between 10 percent and 30 percent of all prescription and over-the-counter drugs sold are not consumed and pose significant risks to public health and the environment. Drugs flushed down the toilet or tossed in the trash can end up in oceans and waterways, and unused medications stored in medicine cabinets can lead to their abuse.
In 2013, CVS launched its Medication Disposal for Safer Communities program, distributing drug collection bins to police departments and municipalities for safe disposal of prescription medications also considered “controlled substances.”
CVS has donated 275 drug collection bins to date and of those, the first 100 collected nearly 6,500 pounds of old medications in the first six months.
The goal is to award a total of 1,000 drug collection bins to local governments across the US, said Eileen Howard Boone, CVS SVP CSR. “Prescription drug abuse, especially in teens, has soared in recent years,” said Boone. “More than 70 percent of teenagers say it is easier to get prescription drugs from their parents’ medicine cabinets, according to a 2014 study conducted by Partnership for Drug-Free Kids.”
CVS has also participated in National Prescription Drug Take-Back Day, a joint program of the Justice Department and Drug Enforcement Administration that collects unwanted prescription medications from across the country twice a year. Last year’s take-back days collected 1.4 million pounds of medication.