Premier Inc. leaves specialty pharmacy business, sells assets to CVS
Group purchasing organization Premier Inc. will no longer participate in the specialty pharmacy business and says it will continue to focus on supply chain, enterprise analytics and performance improvement capabilities.
Premier’s consolidated subsidiaries entered into a definitive asset purchase and sale agreement with ProCare Pharmacy, L.L.C., a subsidiary of CVS Health Corporation, under which Premier will sell certain assets related to its specialty pharmacy business for $22.5 million, plus up to an additional $20.0 million for inventory, each subject to adjustment, said the company in a news release. The transaction is expected to close by June 30, 2019.
“Although specialty pharmacy continues to be an important component in healthcare, today’s market dynamics are challenging and have resulted in new pressures across the industry,” said Michael Alkire, President, Premier in a statement. “Exiting the business better positions Premier to capitalize on our strengths and enhance our focus on core, growing business lines encompassing our supply chain, enterprise analytics and performance improvement capabilities.”
The sale was made in connection with the company’s plans to discontinue its specialty pharmacy operations conducted by both Acro Pharmaceutical Services and Commcare Pharmacy by June 30, 2019. Net proceeds from the transaction will be used primarily to fund costs associated with the transaction and wind down and exit from the specialty pharmacy operations, and for general corporate purposes.
DeVore added: “One of the reasons we selected CVS Health, one of the nation’s leading health innovation companies, is because of its strong track record of providing outstanding patient care, and commitment to helping people on their path to better health,” said Susan DeVore, Chief Executive Officer, Premier.
Premier’s specialty pharmacy business currently serves 367 hospitals across 66 health systems. The business consists of Acro Pharmaceutical Services and Commcare Pharmacy, which operate facilities in Philadelphia, PA (Acro), Memphis, TN (Acro) and Plantation, FL (Commcare).
