* Q2 adj. EPS 7 cents vs est. 9 cents
* Q2 rev $412.0 mln vs est. $426.7 mln
* Sees FY 2010 rev at lower end of prior view
* Shares fall 30 pct to yr-low
(Adds details, analyst comments, updates stock movement)
By Krishnkali Sengupta
BANGALORE, July 30 Specialty pharmaceutical
company BioScrip Inc (BIOS.O) posted lower-than-expected
quarterly results and said it expects 2010 revenue at the lower
end of its prior view, as it plans to focus on therapies that
are more profitable but have lower per-patient revenue.
Shares of the company sank as much as 30 percent to their
52-week low of $4.40, but recovered some losses to trade down
26 percent at $4.64 Friday afternoon on Nasdaq.
"Honestly I think its an over-reaction ... may be we were
too optimistic for the second quarter," Dougherty & Co LLC
analyst Brooks O'Neil said.
He added investors could be disappointed as the company had
been struggling a little for the past couple of quarters with
completion of Critical Homecare Solutions acquisition in
"And a significant reason could be, as it happens to be the
last day of the month, a lot of hedge funds get evaluated on
their performance, so they do not want to own stock at the end
of the day," O'Neil added.
BioScrip said it was targeting those therapies that can
generate the greatest profitability per patient, such as the
traditional infusion therapies.
Through its infusion and home health segment the company
provides dispensing and administrative infusion-based drugs
that require additional medical supervision. It also provides
nursing services such as rehabilitation and occupational
For 2010, the company had earlier forecast revenue of $1.67
billion to $1.72 billion.
For the second quarter, the company posted a net income of
$3.1 million, or 6 cents a share, compared with $4.4 million,
or 11 cents a share, a year ago.
Excluding special items, the company earned 7 cents a
Revenue rose 25 percent to $412 million.
Analysts on an average were expecting earnings of 9 cents a
share, on revenue of $426.7 million, according to Thomson
Revenue from the pharmacy services segment rose 4.5
percent, while revenue from infusion and home health services
Critical Homecare Solutions contributed about $63.5 million
to the infusion home health segment.
(Reporting by NR Sethuraman and Krishnkali Sengupta in
Bangalore; Editing by Unnikrishnan Nair)