Omnicell to Acquire Pharmaceutical Strategy Group’s Leading 340B Software-Enabled Service Business
Expands pharmacy supply chain capabilities for efficient, compliant management of 340B programs
Accelerates Omnicell’s strategic transformation to support the vision of the fully
Expected to be immediately accretive to non-GAAP earnings per share
The federal 340B Drug Pricing Program has provided financial assistance to hospitals serving vulnerable communities for more than 25 years. The program offers drug discounts to support eligible entities, including certain hospitals and other federally-qualified health centers, that provide care for the nation’s underinsured and uninsured patients. The 340B program continues to be an important source of funding for vital patient care as covered entities face rising healthcare costs, reimbursement cuts, and uncompensated care. To manage the increasing complexities of program compliance, eligible hospitals and other entities rely on software-enabled services to manage the program. The importance of the 340B program continues to grow as covered entities seek solutions to help manage rising healthcare costs and uncompensated care.
The acquisition of the 340B Link business accelerates Omnicell’s journey to the fully
“This is an exciting transaction for
“Since 2011, 340B Link has been helping our customers manage their 340B programs efficiently and compliantly in support of high-quality patient care, and we’re excited to watch our friends and colleagues continue this meaningful work as part of the
Compelling Strategic Benefits
- Provides differentiated services and solutions: 340B Link combines industry-leading software, deep knowledge of the 340B program, and software-enabled services that deliver superior outcomes for its customers, significantly improving compliance through:
- Split Billing (Order Link): Drives productivity through a web-based ordering and inventory management tool, built on a market-leading qualification engine that optimizes 340B program value for mixed use and entity-owned pharmacy environments from a single platform.
Contract Pharmacy Administration(Network Link): Optimizes the contract pharmacy network, providing access to any 340B contract or mail order pharmacy – including all major national chains, regional chains, and independent pharmacies across the U.S.– while simplifying program management to drive effective and compliant program value. With integration and active relationships currently connecting covered entities to more than 5,000 individual pharmacy locations, including all leading retail chains, mail order, and specialty pharmacies, 340B Link’s unmatched 340B pharmacy network drives increased program value to clients. Specialty Contract Pharmacy Administration(Specialty Link): Streamlines the specialty contract pharmacy network to extend covered entity 340B discounts and provide additional access to more than 90% of specialty drugs.
- Drug Discount Access Solutions (Community Link): Provides covered entities the ability to share 340B discounts with eligible patients through a discount card at their neighborhood pharmacy. Supports administration of free or subsidized medications to select patients in support of charity care or condition-specific programs.
- Extends the Autonomous Pharmacy Vision: 340B Link manages complex processes and compliance for 340B-administered medication across ambulatory settings, extending the vision of the
Autonomous Pharmacyacross the care continuum.
- Adds High-Growth, Immediately Accretive, Recurring Revenue Business: 340B Link is a high growth software-enabled services business with a recurring revenue business model, aligned with customer success.
- Complementary to Omnicell One: 340B Link’s capabilities are complementary to Omnicell One, Omnicell’s recently-announced, technology-enabled service which focuses on pharmacy supply chain optimization and diversion management. Omnicell One leverages a unique set of predictive and prescriptive analytics along with expert guidance to deliver insights and a closed-loop workflow that supports pharmacy labor efficiency, controlling medication spend and effective diversion management.
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Under the terms of the agreement, PSG will receive total aggregate cash consideration of
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the timing of the consummation of the acquisition, the expected benefits of the acquisition of the 340B Link business, including on Omnicell’s non-GAAP earnings per share, the impact of the acquisition on Omnicell’s products and services and the capabilities of the products and services of the 340B Link business. There are a significant number of factors that could cause actual results to differ materially from statements made in this release, including: difficulties encountered in closing and integrating the acquired business, including regulatory review, technologies, personnel and operations; costs related to the acquisition; market acceptance of the acquisition, and resulting products and services; Omnicell’s inability to realize value from its significant investments in its business, including product and service innovations; and general market, political, economic and business conditions, including the ongoing COVID-19 pandemic, and other industry or economic conditions outside of Omnicell’s control.
Additional information on potential factors that could affect Omnicell’s financial results is included in the company’s Quarterly Report on Form 10-Q for the quarter ended
For more than 25 years,