Option Care Health, Inc. · NASDAQ:OPCH
Option Care Health — BioScrip — Jefferies & Company 2010 Global Healthcare Services Conference
20 slides from Option Care Health's conference presentation, Jan 26, 2010
Slide 1: BioScrip, Inc. Investor Presentation
BioScrip, Inc. Investor Presentation January 2010 Jefferies & Company, Inc. 2010 Global Healthcare Services Conference NASDAQ: BIOS
Slide 2: Safe Harbor
Safe Harbor This presentation includes forward-looking statements regarding the proposed acquisition and related transactions that are not historical or current facts and deal with potential future circumstances and developments, in particular information regarding growth opportunities, expected syn
Slide 3: Additional Information and Where to Find It
Additional Information and Where to Find it BioScrip, Inc. intends to file with the Securities and Exchange Commission (the "SEC") a proxy statement regarding the issuance of stock in connection with the proposed transaction. The proxy statement will be mailed to the stockholders of BioScrip. INVEST
Slide 4: BioScrip to Acquire Critical Homecare Solutions
BioScrip will acquire CHS for $343.2 million in cash and stock and will issue 3.4 million warrants to CHS shareholders Creates the leading, independent specialty pharmacy and home infusion provider National network of specialty and home infusion pharmacies in 28 states 1,000+ payer relationships Ove
Slide 5: BioScrip specialty pharmacy services
bIO Managed Care Organizations Pharmaceutical Manufacturers Patients Physicians, Hospitals, Clinics Distribution Community Infusion Mail Specialty pharmacy services
Slide 6: Long-term Strategic Goals
Build clinical leadership across all technologies: infusion, oral, injectibles, nursing Expand our national footprint: high-touch/high-feel model Grow revenue, expand margins and operating income Adherence, compliance and retention model improves quality of care and controls overall medical costs an
Slide 7: Overview of Critical Homecare Solutions
Overview of Critical Homecare Solutions Leading provider of home infusion and home health services to patients suffering from chronic and acute medical conditions PF LTM as of 9/30/09 Revenue and EBITDA of approximately $252 million and $39 million, respectively Gross margin: 51% EBITDA margin: 15%
Slide 8: Key Benefits of the Transaction
Key Benefits of the Transaction Ability to cross-sell all services on a national basis, enabling accelerated pull-through opportunities 140 field sales professional Expanded national footprint with strong regional and local management Focus on traditional higher margin therapies that will expand ove
Slide 9: BioScrip is an integrated solution
BioScrip is an integrated solution... 3 Central Mail- order Facilities 33 Specialty Service Centers + 33 Nursing Locations 44 Specialized Infusion Pharmacies 28 State Local coverage 1000+ Managed Care Relationships 100K+ Patient Census
Slide 10: Market Opportunity and Transaction Rationale
Market Opportunity and Transaction Rationale
Slide 11: Specialty Market Opportunity
Specialty Market Opportunity $60 billion industry, growing at 15% - 20% per annum High-cost, chronic care therapies with side effects creates need to clinically manage these patients Market growth driven largely by increased utilization due to existing and new technologies and demographics Specialty
Slide 12: Specialty Pipeline Focus: 2010 and beyond
Specialty Pipeline Focus: 2010 and beyond
Slide 13: Clinical Model: Home Infusion and Specialty Services
Clinical Model: Home Infusion Specialty Services Specialty Services Specialty Distribution Cost per Patient / Year: $5,000 - $40,000 $5,000 - $40,000 $7,500 - $300,000 $7,500 - $300,000 Average Length of Therapy: 4 Months 4 Months >1 Year >1 Year Nutrition Anti-Infectives Antivirals Hydration Pain M
Slide 14: BioScrip Fully Integrated Service Model
BioScrip Fully Integrated Service Model Specialty Pharmacy Specialty Service Center Full-scale inventory and adjunctive products Advanced drug utilization review and patient counseling Counseling, testing and referral, with strong linkage to community medical care, treatment and prevention services
Slide 15: Pro Forma Platform
Pro Forma Platform BioScrip Affiliated Pharmacies BioScrip BioScrip and CHS
Slide 16: Financial Review
Financial Review bio@pscrip ee
Slide 17: Summary of Key Transaction Terms
Proposed Acquisition of Critical Homecare Solutions Summary of Key Transaction Terms Acquiror BioScrip, Inc. Target Critical Homecare Solutions ("CHS") Consideration Cash: $242.0 million (includes an estimated $132.0 million to repay CHS debt) Stock: 12.94 million shares ($101.2 million based on las
Slide 18: Pro Forma Combined Financial Summary
Pro Forma Combined Financial Summary LTM as of September 30, 2009 Pro forma LTM revenue of $1.6 billion Pro forma LTM Adjusted EBITDAO of $73.4 million Estimated at Close $27.0 million in cash $325 million in total debt Net debt / pro forma LTM Adjusted EBITDAO of 4.1x
Slide 19: Pro Forma Guidance and Merger Impact
Pro Forma Guidance and Merger Impact Pro Forma Company Overview 2010 Guidance (based on 9 months of CHS, assuming closing on March 31, 2010) Revenue $1,670 - $1,730 billion Gross Profit $267 - $277 million EBITDAO $67 - $71 million Transaction expected to be accretive to 2010 cash EPS and slightly d
Slide 20: BioScrip, Inc.
BioScrip, Inc. Investor Presentation NASDAQ: BIOS January 2010 Jefferies & Company, Inc. 2010 Global Healthcare Services Conference
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