Option Care sees significant impact from pandemic

Wednesday, August 5, 2020

BANNOCKBURN, Ill. – Option Care Health reported net revenue of $740.8 million for the second quarter ended June 30, a 49% increase compared to the same period in 2019. The company noted, however, that given the merger between Option Care and BioScrip comparisons to historical periods are relative to Option Care only and incorporate BioScrip results from Aug. 6, 2019, prospectively. Option Care reported a net loss of $7.7 million vs. $13.6 million. “I am very pleased with the second quarter financial results given the COVID-19 pandemic situation and the dynamic environment in which we are operating,” said CEO John Rademacher. Option Care says the pandemic had a significant impact on the company’s second quarter results, with new patient referrals negatively impacted across the portfolio of both acute and chronic therapies. Offsetting that impact: Option Care benefited from the transfer of existing patients receiving infusion therapy in a hospital or other setting to receive therapy in the home or one of the company’s infusion sites. The company says comparable revenue growth for the quarter is estimated at about 7% when considering the impact of the merger and the harmonization of accounting policies, with acute therapies declining in low single digits and chronic therapies growing in the low double digits. For the full year 2020, Option Care expects to generate between $200 million and $210 million in adjusted EBITDA and at least $50 million in free cash flow, defined by the company as net change in ending cash balance compared to the cash balance at Dec. 31.