CHICAGO, July 2 (Reuters) - Walgreen Co. <WAG> on Monday said it plans to buy Option Care Inc. <OPTN>, a provider of home infusion pharmacy services, for $760.5 million plus the assumption of some debt, marking its latest expansion into patient care.
Shares of Option Care rose about 25 percent but still traded below the offer price of $19.50 per share.
Walgreen, one of the largest U.S. drugstore chains, has typically grown on its own rather than through acquisitions, but has been acquiring assets to expand its lineup of health-related services. Walgreen's latest move comes months after its main rival, CVS, became the largest provider of specialty pharmacy services with its acquisition of Caremark.
Walgreen expects the acquisition to close in a few months and add "slightly" to earnings in the first year and more in future years, Chief Financial Officer William Rudolphsen said during a conference call. He also said Walgreen anticipates pretax synergies of about $15 million in the first year.
Walgreen said that once the acquisition is completed, it will rank as the fourth-largest U.S. specialty pharmacy business behind CVS/Caremark Corp. <CVS>, Medco Health Solutions Inc. <MHS> and Express Scripts Inc. <ESRX>.
The deal between the two suburban Chicago companies follows Walgreen's purchases of Take Care Health Systems, an operator of in-store health clinics, Medmark Specialty Pharmacy Solutions, SeniorMed Pharmacy and Schraft's, a specialty pharmacy focused on fertility medications and services.
Option Care's board unanimously approved the deal. John Kapoor, Option Care's founder, and trusts established by him, which together own about 22 percent of the outstanding Option Care shares, committed to tender their shares.
Walgreen said it would pay $19.50 in cash for 34.5 million outstanding Option Care shares and 4.5 million in option equivalent shares, or a total of $760.5 million, plus the assumption of about $86 million in debt.
Option Care provides home infusion services and other specialty care for more than 40,000 patients from over 100 pharmacies in 34 states. Walgreen's existing home care business, Walgreens Home Care, operates 45 facilities in 18 states and Walgreens Specialty Pharmacy operates six locations.
Shares of Option Care were up $3.85, or 25 percent, at $19.25 after rising to $19.30 in heavy Nasdaq trading. Shares of Walgreen were up 15 cents at $43.69 after rising to $43.92 on the New York Stock Exchange. <<
WASHINGTON, Oct 3 (Reuters) - The Food and Drug Administration said on Wednesday it may create a new category of drugs that would be available without prescription at drugstores, but only after consultation with a pharmacist.
The FDA will hold a public meeting on Nov. 14 to hear feedback about the "behind the counter" concept, which could make some drugs now available by prescription drugs more widely accessible to patients.
Currently, only a few behind-the-counter drugs, such as Barr Pharmaceuticals Inc's (BRL) Plan B birth control drug, are available in the U.S., but countries such as the U.K., several other European nations, Australia, Canada and New Zealand use them more widely.
Trade groups for pharmacists backed the effort to expand their role in the health care delivery system.
"We think it's a very wise thing to do," said Charlie Sewell, senior vice president of government affairs for the National Community Pharmacists Association, which represents 23,000 independent, non-chain pharmacist owners, managers and workers. "Other countries have this approach and it's worked fairly well."
A spokeswoman for the National Association of Chain Drug Stores, which represents big chains like CVS Caremark Corp. (CVS) and Walgreen Co (WAG), said the group backs the move as well.[Why wouldn’t they?]
The FDA noted that in other countries, the criteria generally used for so-called BTC status are suitability for self-diagnosis and a low potential for serious side effects and overdose.
"Because pharmacists have the training and knowledge to provide certain interventions, they may be able to ensure that patients meet the conditions for use and educate patients on appropriate use of the drug product," the FDA said in a Federal Register notice.
The new access might help patients without health insurance because the medications would otherwise be available only with a prescription, the agency said.
The FDA said it wants input from the drug industry, medical community and advocacy groups about whether some drugs should become available on a behind-the-counter basis, what impact it would have on patients' use, and what criteria a drug would have to meet to be classified as behind-the-counter.
The agency also wants suggestions on what role a pharmacist should play in counseling and monitoring patients' use of a behind-the-counter drug, and what measures would be necessary to ensure patient safety. <<
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