Provider of drugs to long-term care facilities and nursing homes, Omnicare Inc. (OCR) recently reported that Hospice Pharmacia, an offering of excelleRx Inc., an Omnicare Company, has teamed with Drug Buster. Drug Buster is the provider of the Drug Disposal System. It provides preferential pricing to hospices to facilitate their drug disposal efforts.
The destruction of unused drugs is a major issue for the hospice business. Hospice Pharmacia’s decision to provide Drug Buster’s Drug Disposal System at a lower price to hospices fulfills a critical need of the elderly.
Under the system, Drug Buster permits hospice employees to help patients (with unused medicines) to destroy leftover drugs. For this purpose, the unit has a liquid that destroys the drugs in a closed vessel.
Based in Burlington, Wisconsin, Drug Buster is a part of C2R Global Manufacturing Inc. The company makes drug production a safer process.
Hospice Pharmacia, an offering of excelleRx, an Omnicare Inc. company, is determined to ensure the correct use of drugs by the elderly. Hospice Pharmacia initiatives led to excelleRx to be rated as the leader in managing late life drugs.
Omnicare is a market leading provider of long-term care pharmacy services and health care environment for individuals directly and indirectly, through subsidiaries, across North America. Despite fluctuations, Omnicare has shown improvement in margins, attributable to new generics introductions and cost containment efforts. It competes with PharMerica Corporation (PMC) in certain niche segments.
Moreover, generic launches in the next few quarters present a major opportunity due to Omnicare’s direct access to manufacturers and current greater exposure to the institutional pharmacy channel than in the past couple of years. However, the company continues to rely on Medicare and Medicaid programs for a major share of its revenues.
The stock carries a Zacks Rank #2 (Buy). Cyberonics Inc. (CYBX) and Covance Inc. (CVD) are Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks, respectively, which are expected to do well.
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