Omnicare (NYSE: OCR) is a Fortune 500 company based in Covington, Kentucky. Omnicare functions primarily as a provider of pharmaceuticals, related consulting and data management services. As of December 31, 2009 the company provided its pharmacy services to skilled nursing, assisted living, and other healthcare facilities comprising approximately 1.4 million beds in 47 U.S. states, the District of Columbia and Canada. Omnicare’s contract research organization provides product development and research services for the pharmaceutical, biotechnology, nutraceutical, medical devices and diagnostic industries in 31 countries worldwide. Names John Figueroa chief executive officer, board member
Appointment effective Jan 1, to replace James Shelton
Dec 8 2010 (Reuters) - Pharmacy services provider Omnicare Inc (OCR.N) named industry veteran John Figueroa as its new chief executive officer, effective Jan 1.
Figueroa, with more than 20 years of experience in the healthcare industry, most recently served as president of the U.S. pharmaceutical group at McKesson Corp (MCK.N).
Figueroa will replace James Shelton, who was appointed as an interim CEO in August after the company's longtime CEO resigned unexpectedly.
Shelton will remain with Omnicare as the new non-executive chairman of its board and assist Figueroa during the transition period.
Omnicare's shares which have gained about 10 percent in the last three months closed at $23 Tuesday on the New York Stock Exchange. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Jarshad Kakkrakandy)
In November 2009, Omnicare paid $98 million to the federal government to settle five “qui tam” (whistleblower) lawsuits and government charges that the company had paid or solicited a variety of kickbacks. [1] The company admitted no wrongdoing.[2] The charges included allegations that Omicare solicited and received kickbacks from a pharmaceutical manufacturer, Johnson & Johnson, in exchange for agreeing to recommend that physicians prescribe Risperdal, a Johnson & Johnson antipsychotic drug, to nursing home patients. The settlement also covered a whistleblower lawsuit that alleged that Omnicare paid $50 million to the owners of the Mariner Health Care Inc. and SavaSeniorCare Administrative Services LLC nursing home chains in exchange for the right to continue providing pharmacy services to the nursing homes.

Omnicare, Inc. is the nation's major provider of pharmaceutical products and services to nursing homes, assisted living institutions, and other long-term care facilities. Its pharmacies usually provide prescription drugs and pharmaceutical consulting services to geriatric institutions located within a 150-mile radius. It buys many of its drugs from wholesale distributor McKesson Corporation, but increasingly purchases drugs directly from manufacturers. Related services include infusion therapy, computerized billing and drug monitoring, and dialysis services. Omnicare also uses its relationships with nursing homes to serve as a contract research organization (CRO) that conducts a wide variety of clinical trials in 27 countries for pharmaceutical and biotechnology companies.

Omnicare, Inc. (Omnicare) is a pharmaceutical services company. Omnicare operates through two business segments: Pharmacy Services and contract research organization services (CRO Services). The Company Pharmacy Services segment provides pharmaceuticals and related pharmacy and ancillary services to long-term healthcare institutions. Its clients include primarily skilled nursing facilities (SNFs), assisted living facilities (ALFs), retirement centers, independent living communities, hospitals, hospice, and other healthcare settings and service providers. CRO Services provides product development and research services for the pharmaceutical, biotechnology, nutraceutical, medical devices and diagnostic industries in 32 countries worldwide. Omnicare is also a provider of specialty pharmaceutical products and support services. As of December 31, 2010, Omnicare served long-term care facilities, as well as chronic care and other settings consisting of approximately 1,385,000 beds, including approximately 86,000 patients served by the patient assistance programs of its specialty pharmacy services business. In September 2010, the Company acquired Continuing Care Rx.
Pharmacy Services
Pharmacy Services segment provides distribution of pharmaceuticals, related pharmacy consulting and other ancillary services, data management services and medical supplies to SNFs, ALFs, retirement centers, independent living communities, hospitals, hospice, and other healthcare settings and service providers. As of December 31, 2010, Omnicare provided its pharmacy services in 47 states in the United States, the District of Columbia and Canada. Pharmacy Services purchases, repackages and dispenses pharmaceuticals, both prescription and non-prescription, and provides computerized medical record-keeping and third-party billing for residents in these facilities. It also provides consultant pharmacist services, including evaluating monthly patient drug therapy, monitoring the drug distribution system within the nursing facility, assisting in compliance with state and federal regulations and providing clinical and health management programs.
The Company’s Pharmacy Services segment provides a range of other products and services, including intravenous medications and nutrition products (infusion therapy products and services), respiratory therapy services, medical supplies and equipment, clinical care planning and financial and operational software information systems, electronic medical records systems, pharmaceutical informatics services, pharmacy benefit management services, retail and mail-order pharmacy services, pharmaceutical care management for hospice agencies and product support and distribution services for specialty pharmaceutical manufacturers. It also provides pharmaceutical case management services for retirees, employees and dependents who have drug benefits under corporate-sponsored healthcare programs. During the year ended December 31, 2010, the Pharmacy Services segment consisted of approximately 98% of the Company’s total net sales.
The Company purchases, repackages and dispenses prescription and non-prescription medication in accordance with physician orders and deliver, such prescriptions to long-term care facilities for administration to individual residents. It services long-term care facilities within a radius of approximately 150 miles of its pharmacy locations and maintain around-the-clock, on-call pharmacist service for emergency dispensing and delivery, and for consultation with the facility's staff or attending physician. Supplementing the various clinical services, Omnicare provides client facilities and their attending physicians a guide to pharmaceutical treatment of the elderly called the Omnicare Geriatric Pharmaceutical Care Guidelines (Omnicare Guidelines). The Omnicare Guidelines ranks drugs used for specific diseases as preferred, acceptable or unacceptable based solely on their disease-specific clinical effectiveness in treating the elderly. The Omnicare Guidelines takes into account such factors as pharmacology, safety and toxicity, efficacy, drug administration, quality of life and other considerations specific to the frail elderly population
Contract Research Organization
CRO Services is a provider of product development and research services to client companies in the pharmaceutical, biotechnology, nutraceutical, medical devices and diagnostics industries. Omnicare’s CRO Services segment provides support for the design of regulatory strategy and clinical development of pharmaceuticals by offering individual, multiple, or integrated services, including project management, clinical monitoring, quality assurance, data management, medical writing and regulatory support for its client’s drug development programs. During 2010, the CRO Services segment consisted of approximately 2% of the Company’s total net sales.
The Company competes with PharMerica Corporation.

In December 1997 Omnicare completed its acquisition of Coromed Inc. of Troy, New York, a company that contracted with pharmaceutical and biotechnology firms to provide research services. This was Omnicare's first acquisition of a contract research organization (CRO), which took advantage of Omnicare's already existing relationships with numerous nursing homes and other long-term healthcare institutions. This was a major turning point for Omnicare, for now it was involved in the testing of new drugs, not just the distribution of drugs.
At the end of 1997 Omnicare provided its pharmacy services to about 443,100 individuals in 5,500 nursing homes, retirement centers, and other long-term care facilities in 37 states. Some 7,450 workers, including 1,796 part-time, were employed at the end of the year. In its 1997 10-K annual report to the Securities and Exchange Commission, Omnicare said that it was "the largest independent institutional pharmacy company in the U.S."
The company's sales grew steadily from $223.1 million in 1993 to $307.7 million in 1994, $399.6 million in 1995, $536.6 million in 1996, and $895.7 million in 1997. Meanwhile, Omnicare reported its net income rising from $11.25 million in 1993 to $13.5 million in 1994, $24.8 million in 1995, $43.45 million in 1996, and $55.7 million in 1997.
In 1998 Omnicare grew rapidly by acquiring 11 other companies, including IBAH, Inc. of Blue Bell, Pennsylvania, a product research and development company with annual sales of $88.1 million and 22 offices in 16 nations. Acquired for $63.3 million in stock, CompScript Inc. provided mostly pharmacy management services to about 20,000 patients in 137 nursing homes and long-term care facilities. Other 1998 acquisitions included Premiere Institutional Pharmacy Inc. based in Van Nuys, California; Med World Pharmacy Inc. in Valley Cottage, New York; and Inpatient Pharmacy in Hauppauge, New York.
Omnicare continued to grow by acquisitions in 1999. It gained Life Care Pharmacy Services Inc., a subsidiary of Cleveland's Life Care Services of America Inc. and Cedar Rapids, Iowa's Pharmacy Care Associates to build up its geriatric pharmacy distribution business, while strengthening its contract research capabilities by acquiring Institut für numerische Statistik Dr. Hasse GmbH in Cologne, Germany.
Omnicare Inc. in 2001 increased its revenues to $2.15 billion from $1.97 billion the year before. Its 2001 revenues earned it a ranking as the nation's 657th largest company, according to Fortune on April 15, 2002. In the healthcare industry, Omnicare was listed as the 26th largest company. In 2001 Omnicare also had profits of $74 million, a healthy 52 percent annual increase, and 9,000 employees, down 3 percent from 2000.
In January 2002 the company completed a major acquisition by buying most assets of American Pharmaceutical Services Inc., which served patients through its 32 pharmacies in 15 states. Once again Omnicare continued its role as a major consolidator of the geriatric pharmaceutical distribution and consulting industry.
Omnicare proved to be a great example of a company that changed directions to take advantage of healthcare and demographic trends beginning in the 1980s. Since hospital occupancy rates fell and numerous community hospitals closed their doors, Omnicare quit providing products and services for such large institutions. Second, it shifted to serving the rapidly aging American population by providing pharmacy services to nursing homes, assisted living facilities, and other geriatric institutions. Omnicare's focus on such smaller facilities was part of a general decentralization trend in the postindustrial Information Age.
Principal Subsidiaries: Omnicare Pharmacy and Supply Services, Inc.; Omnicare Pharmaceutics, Inc.; Omnicare Management Company; Omnicare Holding Company; Omnicare Clinical Research; Quebec, Inc.; ComScript, Inc.
Principal Competitors: NCS HealthCare, Inc.; PharMerica, Inc.


OVERALL
Beta: 0.66
Market Cap (Mil.): $3,809.93
Shares Outstanding (Mil.): 115.94
Annual Dividend: 0.13
Yield (%): 0.40
FINANCIALS
OCR Industry Sector
P/E (TTM): -- 26.47 39.56
EPS (TTM): -135.33 -- --
ROI: -1.33 3.32 4.17
ROE: -2.32 4.67 5.16


Statistics:
Public Company
Incorporated: 1981
Employees: 9,300
Sales: $2.15 billion (2001)
Stock Exchanges: New York
Ticker Symbol: OCR
NAIC: 422210 Drugs and Druggists' Sundries Wholesalers


Key Dates:
1981: Omnicare is incorporated and its common stock begins to be publicly traded.
1985: The company begins emphasizing pharmacy services for long-term care facilities.
1989: Diagnostek in August acquires HPI Health Care Services, Inc. from Omnicare.
1990: Omnicare divests the Bunn/Xorbox Group.
1992: Selling the Veratex Group completes the transition to a geriatric pharmaceutical firm; seven acquisitions are completed.
1993: Omnicare acquires four companies.
1994: The Omnicare Guidelines is introduced to help clients provide better services; seven institutional pharmacies are acquired; Heartland Healthcare Services is started as a 50/50 partnership with Health Care and Retirement Corporation.
1996: Seventeen more institutional pharmacies are acquired.
1997: Coromed Inc. acquisition begins Omnicare's contract pharmaceutical research business.
1998: Omnicare acquires 11 more companies.
1999: Omnicare acquires Life Care Pharmacy Services and Pharmacy Care Associates.
2002: In January Omnicare completes its acquisition of American Pharmaceutical Services.

Name Age Since Current Position
Shelton, James 57 2011 Non-Executive Chairman of the Board
Figueroa, John 48 2011 Chief Executive Officer, Director
Workman, John 59 2011 President, Chief Financial Officer
Finn, Leo 52 2010 Executive Vice President - Strategic Planning and Development
Stamps, Jeffrey 51 2010 Executive Vice President and President - Long-Term Care Operations
Sahney, Nitin 48 2010 Executive Vice President and President - Specialty Care Group
Kayne, Alexander 2011 Senior Vice President, General Counsel, Secretary
Kinerk, Beth 42 2009 Senior Vice President - Sales and Customer Development
Erwin, W. Gary 58 2006 Senior Vice President - Professional Services
Lindell, Andrea 67 1992 Independent Director
Crotty, John 73 2011 Independent Director
Wallman, Amy 61 2004 Independent Director
Heyer, Steven 58 2008 Independent Director

Address:
1600 RiverCenter II
100 East RiverCenter Boulevard
Covington, Kentucky 41011
U.S.A.
 
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