BioScrip Reaches Deal on Contract

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.

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