Onco360 Expected to Rapidly Grow Revenues Over the Next Several Years
LOUISVILLE, Ky. and NEW YORK – December 9, 2013 – PharMerica Corporation’s (NYSE: PMC), a leading institutional pharmacy, specialty infusion and hospital services company servicing healthcare facilities in the United States, and Onco360, the largest independent provider of oncology pharmacy services in the United States, today announced that the companies have entered into a definitive agreement under which PharMerica has acquired a significant minority stake of Onco360. Under the terms of the agreement, PharMerica has the option to acquire the portion of Onco360 it does not already own over the next several years. Financial terms of the transaction were not disclosed.
Onco360 is a leading oncology pharmacy and clinical support services company, with JCAHO-accredited pharmacies across the United States. It is the largest privately held pharmacy company in the United States focused exclusively on the oncology segment. Onco360 focuses on the needs of oncology, urology and hematology physicians, patients, payers, and pharmaceutical manufacturers. Onco360’s differentiated dispensing and care management platform meets the unique needs of all these stakeholders.
The partnership between PharMerica and Onco360 creates the only national oncology pharmacy and care management platform in the country, with the unique ability to service the localized needs of community and hospital based-oncologists. Today, oncology is the largest and fasted-growing segment of specialty drug expenditures in the U.S.:
- In 2012, $40 billion was spent on oncology drugs.
- Annual oncology drug spending is expected to rise to $175 billion by 2020, a four-fold increase.
- In 2013, there were over 1.5 million new cancer cases, a number that is expected to increase by approximately 50 percent by 2030.
- Oncology has a robust new drug pipeline of nearly 1,000 drugs, representing approximately 40 percent of total new drug development.i
PharMerica’s Chief Executive Officer Greg Weishar said, “The investment in Onco360 allows PharMerica to expand its presence in the rapidly growing oncology market. Onco360’s annual revenues are currently in excess of $100 million, and we believe revenues will grow rapidly over the next several years. PharMerica has the financial resources, expertise and scale to bring Onco360’s unique pharmaceutical care model to a national platform and make best-in-class oncology pharmacy care more accessible than ever. We are pleased to partner with Onco360 and look forward to capitalizing on the many opportunities ahead to drive growth and enhance shareholder value.”
Onco360’s Chief Executive Officer Burt Zweigenhaft said, “We are pleased to have reached this agreement and to have PharMerica’s vote of confidence in our unique oncology care platform. This partnership will allow us to further expand our franchise on a national scale and provide more patients with the best oncology care possible. Working with PharMerica, we will build upon and further improve the outstanding service levels and capacity that our clients have come to expect from us.”
PharMerica funded the strategic investment with cash on hand.
PharMerica Corporation is a leading institutional pharmacy, specialty infusion and hospital pharmacy management services company servicing healthcare facilities in the United States. PharMerica operates pharmacies in 45 states. PharMerica’s customers are institutional healthcare providers, such as nursing centers, assisted living facilities, hospitals and other long-term care providers. In addition, the Company provides specialty infusion pharmaceuticals to patients in a home setting. The Company also provides pharmacy management services to long-term care hospitals.
Onco360 is the largest independent provider of Oncology Pharmacy Services in the country. Onco360 serves the specialized needs of oncologists, patients, hospitals, cancer centers, manufacturers, and health plans. The company’s clinical and dispensing model was developed specifically to meet the unique needs of oncology-treating physicians and their patients. Onco360 is focused on bringing together stakeholders of the cancer treatment process, and as part of this effort the company is advancing the continuum of oncology pharmaceutical care through patient advocacy, dispensing excellence, and clinical expertise. Onco360 dispenses through its network JCAHO-accredited OncoMed Pharmacies.
David W. Froesel, Jr.
Chief Financial Officer & Treasurer
|Onco360, Oncology Pharmacy Solutions
Chief Brand & Marketing Officer
i Figures reflect internal PharMerica estimates.