Pharma, BioPharma, Pharmacy

With $100M ReCept M&A deal, Omnicell enters growing specialty pharmacy space

Specialty drugs represent a growing share of overall pharmaceutical sales, and Omnicell is acquiring specialty pharmacy technologies company ReCept Pharmacy to enter this market. Omnicell is paying $100 million cash to buy ReCept.

 

Many of the medications now available, as well as many still in development, are specialty drugs for complex conditions. Medication management technologies firm OmniCell wants to ensure it’s part of these prescriptions, and it’s paying $100 million to acquire ReCept Pharmacy, a company that’s well established in the specialty pharmacy market.

Specialty drugs are medications that are difficult or complicated to handle and administer. These drugs include biologics that are given as infusions or injections, though some oral small molecule drugs can also fall into the category. That category has been growing steadily. Specialty pharmacy sales totaled $269 billion in 2020 and accounted for 51% of all pharma sales – the first time that specialty drugs accounted for the majority of overall pharmaceutical sales. These data, cited in an Omnicell investor presentation, come from pharmaceutical services and analytics firm IQVIA.

ReCept, based in Grapevine, Texas, provides technologies and services that help specialty pharmacies manage and dispense these medications. Its customers include healthcare provider groups, federally qualified health centers, and health systems.

“As medical innovations drive new, more complex drugs, pharmacy requires more specialized tools and expertise to help manage the patient’s treatment journey,” Omnicell CEO Randall Lipps said in a prepared statement. “The ReCept acquisition is a strategic investment that expands our portfolio to address the significant market need for specialty pharmacy solutions.”

Omnicell said in the investor presentation that ReCept’s services will complement its own. Based in Mountain View, California, Omnicell provides hardware and software used to help pharmacies manage how they handle and dispense medication. These offerings include robotic systems that automate and streamline pharmacy operations. According to Omnicell’s 2020 annual report, more than 7,000 facilities worldwide use the company’s technologies, while more than 50,000 and retail pharmacies in North America and the U.K. use its medication adherence and population health offerings.

According to Omnicell, ReCept’s specialty pharmacy business recorded about $24 million in revenue for the 12 months ending Sept. 30. Omnicell’s financial statements show revenue topping $1 billion over that same time span.

ReCept is the second major acquisition that Omnicell has announced this year. In September, the company completed its $177 million acquisition of FDA Amplicare, maker of software used by pharmacies and health systems for medication management and adherence. The ReCept acquisition is a cash deal. Omnicell said it will use its available cash for the transaction, which the companies expect to close by the end of this year.

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