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Omnicell Buys Pharmaceutical Strategy Group’s 340B Business for $225M

September 7, 2020

Omnicell has entered into a definitive agreement with Pharmaceutical Strategies Group (PSG) to acquire its 340B Link business for total aggregate cash consideration of $225 million, subject to customary adjustments. The acquisition will add a comprehensive and differentiated suite of software-enabled services and solutions used by certain eligible hospitals, health systems, clinics, and entities to manage compliance and capture 340B drug cost savings on outpatient prescriptions filled through the eligible entity’s pharmacy or a contracted pharmacy partner.

The federal 340B Drug Pricing Program has provided financial assistance to hospitals serving vulnerable communities for more than 25 years. The program offers drug discounts to support eligible entities, including certain hospitals and other federally-qualified health centers, that provide care for the nation’s underinsured and uninsured patients. The 340B program continues to be an important source of funding for vital patient care as covered entities face rising healthcare costs, reimbursement cuts, and uncompensated care. To manage the increasing complexities of program compliance, eligible hospitals and other entities rely on software-enabled services to manage the program. The importance of the 340B program continues to grow as covered entities seek solutions to help manage rising healthcare costs and uncompensated care.

The acquisition of the 340B Link business accelerates Omnicell’s journey to the fully Autonomous Pharmacy, building on the company’s recent launch of Omnicell One, which leverages cloud-based data and predictive, prescriptive analytics to provide real-time visibility with actionable insights and workflow optimization recommendations to improve outcomes across the pharmacy supply chain.

“This is an exciting transaction for Omnicell that accelerates our strategic transformation and brings us even closer to achieving the long-term vision of the Autonomous Pharmacy,” said Randall Lipps, chairman, president, CEO, and founder of Omnicell. “Key to realizing this vision is supporting health systems and providers as they manage an increasingly complex medication management supply chain. The 340B program is a significant part of that supply chain, and PSG’s market-leading 340B Link business adds distinct capabilities and software-enabled services to our portfolio, which will help providers manage compliance and reporting requirements for their 340B program, while capturing eligible drug cost savings. We believe that by expanding our offerings and enhancing our pharmacy supply chain capabilities, we will position Omnicell for long-term growth and success.”

“Since 2011, 340B Link has been helping our customers manage their 340B programs efficiently and compliantly in support of high-quality patient care, and we’re excited to watch our friends and colleagues continue this meaningful work as part of the Omnicell family,” said Dave Borden, chief executive officer of PSG. “We are confident that the combination of our team’s capabilities and the broader Omnicell portfolio will provide healthcare providers with the tools to navigate complex cost and compliance challenges across the pharmacy supply chain as part of their broader medication management strategy.”

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