BioScrip has reached an agreement to continue to provide certain core product lines to UnitedHealthcare beyond Sept. 30, the company said Tuesday. Shares were up over 10% in recent pre-market trade. UnitedHealthcare was the company’s biggest client, accounting for 24% of 2016 revenue, prior to an announcement in March that BioScrip would cancel the “unprofitable” contact. With this new agreement, BioScrip says it will retain approximately $35 million of annualized profitable core revenue.
The company says it continues to collaborate with UnitedHealthcare on contract transition plans, including its exit from other non-profitable product lines, and will update its 2017 revenue guidance “when appropriate”. BioScrip is reiterating its prior guidance for adjusted EBITDA in the range of $45.0 million to $55.0 million for full-year 2017.