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WIKI ANALYSIS
BioScrip, Inc. (BIOS), based in Elmsford NY, is a specialty pharmacy services provider and pharmacy benefit manager. BioScrip was formed through the merger of MIM Corporation and Chronimed in March 2005. MIM originated from a company called Pro-Mark Holdings, which was a clinical management and consulting company that developed pharmacy networks and pharmacy benefit carve-out programs. In 1998, MIM acquired a traditional and specialty mail-service operation and officially became a full-service PBM and specialty company. Chronimed had been a pioneer in the specialty pharmacy industry and a leader in providing specialty pharmacy services for people with complex chronic health conditions. In 1996, Chronimed acquired StatScript Pharmacy, which was Chronimed Inc.'s wholly owned and operated retail chain. A key element of the company's growth strategy and a major consequence of the MIM-Chronimed deal was the increased exposure to higher-margin specialty pharmaceutical business.
Bioscrip operates two interrelated business segments, namely: Specialty Services, which is comprised of specialty pharmacy distribution and clinical management services and PBM Services, which is comprised of pharmacy benefit management and traditional mail services. The company's Specialty Services division distributes biotech and other high-cost injectable and infusible prescription medications, in addition to traditional tablets and capsules, and provides clinically focused case and therapy management programs to patients with chronic health conditions, genetic disorders, or have potentially life threatening or debilitating diseases. The division has two distinct distribution models. Firstly, a local or community based distribution model operating through community pharmacies, under which medication is dispensed to retail consumers at the point of sale or through home delivery. These patients typically have commercial prescription drug coverage or coverage through Medicare or Medicaid. And secondly, a national/regional specialty mail distribution model under which BIOS contracts with Plan Sponsors on an exclusive or preferred basis to dispense and ship injectable and infusible medications directly to a patient or to the patient s physician for administration. The company has 34 specialty pharmacies operating as full-service community retail pharmacies, carrying both traditional and specialty medications, under the "BioScrip" brand and located in major metropolitan areas across the United States. In addition, the company operates two infusion centers, one located in Burbank, California and the other in Livingston, New Jersey. PBM Services provide "plan sponsors" with a broad range of tailored cost-effective pharmacy benefit management services through the company's network of retail pharmacies and traditional mail service distribution facility. The company derives revenue through the sale of prescription drugs, and reimbursements for prescription drugs and services provided on behalf of third party payors, Medicare or Medicaid. On May 9, 2006, BIOS reported total revenues of $299.7M comprising of $203.6M Special Services (68% of total revenues) and $96.1M PBM Services (32% of total revenues).
On April 24, 2006, BIOS announced it had been selected by Centers for Medicare and Medicaid Services (CMS) as the national vendor for the initial phase of the new Competitive Acquisition Program (CAP) for certain Part B drugs and biologicals which will run for the period July 1, 2006 through December 31, 2006.
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