CareFusion Corporation (CFN) entered a collaboration agreement with clinical and business solutions and services provider Netsmart to offer enhanced medication dispensing and management capabilities to behavioral health care provider organizations across the U.S.
Under the agreement, CareFusion will integrate its medication use expertise with the closed-loop medication management capabilities of Netsmart. It will help behavioral health patients, the Intellectual and Developmental Disabilities (I/DD) community and those receiving residential services benefit from up-to-date medication dispensing and management solutions for the specific needs of lower-acuity markets.
Through the agreement, Netsmart will provide CareFusion solutions such as Pyxis MedStation ES system, which offers safe, controlled and efficient dispensing of medications for patients in all care settings.
CareFusion solutions will integrate with Netsmart RxConnect and eMAR solutions to provide a seamless solution that helps start client therapies faster by reducing time-to-first-dose and giving nurses fast but secure access to the medications for their patients.
Recently, CareFusion entered a merger deal with Becton, Dickinson and Company (BDX), under which the latter will pay a total of $58.00 a share – $49.00 in cash and 0.0777 of a share of Becton, Dickinson – for each share of CareFusion, representing a premium of approximately 26% to CareFusion’s closing price as on Oct 3.
The merger deal, expected to close in the first half of 2015, clearly reflects the companies’ response to cost-related healthcare reforms mandated under the Affordable Care Act. By combining their complementary product portfolios and technologies, the companies seek to offer a full range of medical products and more cost-effective care.
Moreover, the merger of CareFusion and Becton, Dickinson has the potential to increase the combined entity’s geographical reach and focus intensively on emerging market growth. With more than 50% of its revenues coming from overseas markets, Becton, Dickinson will be able to expand international sales of CareFusion, which currently relies on the domestic market and generates about 75% of its revenues from the same.
Currently, CareFusion retains a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical products industry include ICU Medical, Inc. (ICUI) and OraSure Technologies, Inc. (OSUR). Both of them sport a Zacks Rank #1 (Strong Buy).
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