MIM Corp.

(MIMS)

and

Chronimed

(CHMD)

have agreed to merge in a stock swap deal that will create one of the nation's largest specialty pharmacies.

Under terms of the deal outlined Monday, the merged company will be called BioScrip Inc. with combined revenue of $1.2 billion at year's end.

Shareholders of Minnetonka, Minn.-based Chronimedwill receive 1.025 MIM shares for each share they hold.

With MIM shares closing at $7.27 Friday, that values the offer at about $7.45 a share. Based on Chronimed's 12.72 million outstanding shares, the deal is worth approximately $574.6 million.

MIM said it expects to issue approximately 13.5 million shares to Chronimed shareholders in the merger.

MIM shareholders will own approximately 63% of the new company.

The merger is expected to close by the end of the year, yield cost savings synergies of approximately $10 million annually and be accretive to 2005 earnings.

Upon completion of the merger, BioScrip's headquarters will be in Elmsford, N.Y., and its shares traded on the

Nasdaq

under the ticker symbol BIOS.

Chronimed shares fell 10 cents, or 1.3%, to $7.68 in premarket trading Monday. MIM shares closed at $7.22 Friday.

Both companies will report quarterly earnings later today.