Activists Targeting BioScrip Inc. Will Nominate Directors

BioScrip Inc.

could be facing a proxy fight from a pair of activist investors. The Elmsford, N.Y.-based pharmacy and home health-care company changed hands recently at $6.76, up $0.16 cents. The shares are down nearly 19 percent in the past six months. Cloud Gate Capital and Delaware Street Capital Advisors, acting as a group, separately disclosed a total 6.1 percent stake in the pharmacy and home health services company Tuesday. Each of the two affiliated investors intend to nominate new directors for election at the company's 2015 annual meeting, typically held in the spring. Cloud Gate's David Heller and Brian Newman, together with DCS's Andrew G. Bluhm said they've held "direct communications" with BioScrip's Chairman Myron Z. Holubiak and Chief Executive Richard M. Smith concerning the plan. The investors said they may hold discussions with the company concerning its strategic direction, operations and other issues. Holubiak has been a director since 2005 and was named chairman in 2012. Smith joined the company in 2009 as president and was named CEO in 2011. The company has been unprofitable in each of the past five quarters with choppy revenue. A year ago, BioScrip agreed to pay $15 million to settle allegations that BioScrip received kickbacks from Novartis Pharmaceuticals Corp. to promote Novartis' drug Exjade through a patient education program.