BioScrip Provides Update On Cost Savings Initiatives And Plan To Enhance Shareholder Value

BioScrip, Inc. BIOS ("BioScrip" or the "Company") today provided an update on the Company's plan to enhance shareholder value, improve financial flexibility and position BioScrip as a pure play infusion services company focused on high-growth services. As previously announced, the Company expects to realize $35 million – $40 million in annualized net cost savings over the next 12 months as part of its Financial Improvement Plan. The Company provided the following update on its cost saving and financial improvement initiatives to create value: BioScrip has completed the previously announced sale of its non-core PBM business to ProCare Pharmacy Benefit Manager Inc., a privately held pharmacy benefit manager and part of the ProCare Rx companies, for $25 million in cash. The PBM activities represented approximately $66 million of annual revenue. The net proceeds were used to pay down debt. BioScrip's workforce reduction is on track and will be substantially complete by the end of the third quarter. As previously announced, the reductions are expected to generate $19 million in total savings. The reductions are in specific areas, including corporate infrastructure and are not expected to impact BioScrip's ability to provide quality care and service to patients. Supply chain related activities are being negotiated and are expected to generate $3 million in annual savings by the beginning of 2016, contributing to operating improvement. Corporate and field operating improvement programs have been initiated and are estimated to deliver cost savings of $10 million annually and contribute to operating improvements beginning in January 2016. Carter Pate, Chair of the Financial Improvement Plan Committee of the Board of Directors said, "While we still have work to do, these announcements demonstrate the progress in the execution of our cost savings and financial improvement initiatives. These important strategic steps will drive shareholder value by focusing on our core infusion platform, reducing costs and enhancing BioScrip's financial flexibility. The BioScrip Board of Directors and management remain committed to the Company's Financial Improvement Plan. We all look forward to achieving our objectives." Rick Smith, President and Chief Executive Officer of BioScrip, said, "We are pleased to complete the sale of our non-core PBM business and announce that we are accomplishing key elements of our Financial Improvement Plan. Our patient census levels continue to see solid progression, consistent with expectations. All of these efforts are significant milestones in our work to streamline the Company, maintain dynamic growth in our core business, and position BioScrip as a pure play infusion services provider. We will continue to execute on our plan and concentrate on opportunities with the highest value-creating potential."