* Total deal valued at $225 mln
* Walgreen to pay $170 mln in cash
* Deal to close by late April
* BioScrip shares rise as much as 19 pct
Feb 2 BioScrip Inc said it will
sell certain assets of its community specialty pharmacies and
centralized specialty and mail service pharmacy businesses to
Walgreen Co, the largest U.S. drugstore chain, for about
The news sent the specialty pharmaceutical healthcare
company's shares up as much as 19 percent to $6.96, their
highest in more than three months, on Thursday morning on the
The deal includes about $170 million in cash at closing and
retention by BioScrip of associated accounts receivable and
working capital liabilities of about $55 million.
BioScrip said it could receive up to an additional $60
million based on events related directly or indirectly to
Walgreen's retention of the businesses.
BioScrip had said early last year that it was looking at
strategic options to reduce rising costs, and went through a
series of management changes.
The company said it will use proceeds from the deal -- which
is expected to close by April -- to expand its infusion pharmacy
footprint and pay down debt.
Infusion/home health pharmacy -- which provides injectable
medications and related services in a home setting -- added 25
percent to BioScrip's third-quarter revenue.
According to the National Home Infusion Association (NHIA),
the alternate-site infusion therapy sector in the United States
is currently estimated to be about $9 billion to $11 billion per
year, BioScrip said.
For the nine-months ended Sept. 30, the businesses being
sold to Walgreen reported revenue of $938.5 million and a gross
profit of $73.7 million.
BioScrip's community specialty pharmacy business is a
national network with 30 locations in 16 states across the
United States and the District of Columbia, primarily serving
HIV, oncology and transplant patients.
Elmsford, New York-based BioScrip said it expects the
transaction to add to its 2012 earnings.
MTS Health Partners acted as financial adviser to BioScrip
while Peter J. Solomon Co acted as financial adviser to