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. 1
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.”