CVS Health Acquires Omnicare – Well, the guessing game is over as CVS Health acquires Omnicare. The Pharmacy in Long-Term Care market has a new industry leader as CVS Health will see if their business model translates to the long-term care pharmacy market.
The LTC market is a different business and CVS is moving from their traditional “core competency”. It will be interesting to see if they can evolve to effectively integrate and administer this line of business. Once concern is for patient care. It may be time to separate the clinical review from the dispensing in this area.
CVS should be able to realize significant purchasing and revenue synergies from the acquisition in generics and specialty drugs as Omnicare is a top 10 specialty pharmacy with $1.7 billion in revenue. CVS will apply its corporate strategy of managing the full range of a patient’s pharmacy care to the senior market and grow its business in the institutional market. CVS’ expansion into the institutional market complements their presence in retail and walk-in. What will their next move be?