Bankruptcy Court Approves CVS Health Sale of Omnicare to GenieRx for $250 Million

A bankruptcy court has approved the sale of CVS Health’s Omnicare long-term care pharmacy network to GenieRx in a deal valued at $250 million. CVS Health said the sale to GenieRx followed a comprehensive sale process that was approved by the U.S. Bankruptcy Court for the Northern District of Texas.

GenieRx, a joint partnership between private investment firm Milrose Capital LLC and health-care investment and management firm Integro Healthcare Services, will have the opportunity to strengthen Omnicare’s service, according to CVS Health. The deal continues a series of moves by CVS Health to concentrate on its more profitable businesses.

The company’s Aetna health insurance unit exited the business of selling individual coverage under the Affordable Care Act, and the company has scaled back opening senior health clinics in favor of smaller drugstore formats.

"We are entering this next phase with clarity on what matters most: delivering reliable pharmacy services, maintaining safe and clinically appropriate care, and being transparent and fair in how we operate," said Omnicare’s president in a statement.

" When CVS Health purchased Omnicare for more than $12 billion more than a decade ago, the company sought to expand in the growing business of dispensing and managing prescriptions for Americans taking specialized drugs. The business experienced low growth and faced a fraud investigation that cost CVS Health hundreds of millions of dollars.

The Omnicare sale is expected to close later this year, CVS Health said. "GenieRx’s investment in Omnicare is a testament to the strength of their platform and their impressive employee culture and commitment to putting patients and customers first," said the CEO of Integro Healthcare Services.

"We admire the trust Omnicare has earned with its customers over decades of serving skilled nursing and assisted living partners, and we look forward to working collaboratively with their team to continue building on that strong foundation and legacy.