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Omnicare Inks Distribution Deal
Advanced Care Scripts (ACS), a part of
Omnicare Inc.’s Specialty Care Group, has been recently included in the limited distribution network for Medivation ( MDVN - Analyst Report) and Astellas Pharma’s Xtandi (enzalutamide).
On August 31, 2012, the U.S. Food and Drug Administration (FDA) had approved Xtandi for the treatment of metastatic castration-resistant prostate cancer in patients who have earlier received chemotherapy.
The addition to the limited distribution agreement for Xtandi will enable ACS to provide access and reimbursement support to patients and physicians. ACS will also provide access to the drug to entitled patients who do not have insurance.
Omnicare’s Specialty Care Group has witnessed solid growth with market share gains for specialty drugs. Revenues from the Specialty Care Group surged 25.7% year over year to $330.1 million in the most recent quarter. The Specialty Care Group continues to be the company’s revenue driver. Extending into specialty-focused platforms and additional disease states such as oncology will allow Omnicare to accelerate growth for its Specialty Care Group in the years ahead.
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 currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. The company’s performance in the most recent quarter negated external pricing pressure and reimbursement cuts. Omnicare has shown significant improvement in margins, attributable to new generics introductions and cost containment efforts.
Moreover, generic launches in the next few quarters present a major opportunity due to Omnicare’s direct access to manufacturers and current greater exposure to the institutional pharmacy channel than in the past couple of years. However, the company continues to rely on Medicare and Medicaid programs for a major share of its revenues.