Back to top

Analyst Blog

Advanced Care Scripts (ACS), a part of Omnicare Inc.’s (OCR - Snapshot Report) Specialty Care Group, has been recently included in the limited distribution network for Lundbeck’s Xenazine (tetrabenazine).

Xenazine is the only treatment for chorea which has been approved by the U.S. Food and Drug Administration (FDA). Chorea is a primary indication of Huntington’s disease, as clinical studies have revealed that roughly 90% of those who suffer from chorea are affected by Huntington’s disease.

Management at Omnicare’s Specialty Care Group is enthused about its addition to the limited distribution network for the contemporary drug. The company is also the exclusive provider of Xenazine in the long-term care channel. The business model of the Specialty Care Group is best suited to dispense a specialty drug like Xenazine via its specialty pharmacy, ACS,  to the target population.

Revenues from the Specialty Care Group surged 25.7% year over year to $330.1 million in the second quarter. Omnicare is focused on exploiting new operating platforms to accelerate growth for the Specialty Care Group.

Omnicare is a market leading provider of long-term care pharmacy services and health care environment for individuals directly and indirectly, through subsidiaries across North America. It competes with PharMerica Corporation (PMC - Snapshot Report) and National Healthcare Corp. in certain niche segments.  

Omnicare’s business model ensures that it is well placed to sustain profitability in the long-run. Its performance in the most recent quarter negated external pricing pressure and reimbursement cuts.

Moreover, generics coming to the market in the next few quarters present a major opportunity due to the company’s direct access to manufacturers and current greater exposure to the institutional pharmacy channel than in the past couple of years.

The stock currently retains a Zacks #1 Rank, which translates into a short-term Strong Buy rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.42 +4.74%
BITAUTO HOL… BITA 81.21 +4.48%
SOUTHWEST A… LUV 32.10 +2.75%
CHINA BIOLO… CBPO 47.64 +2.72%
SPIRIT AIRL… SAVE 72.99 +2.66%