Omnicell (OMCL) to Expand EnlivenHealth Division With New Buyout

Omnicell, Inc. OMCL recently acquired MarkeTouch Media, LLC— a pharmacy software solutions provider. The acquisition, which is priced at a total aggregate cash consideration of $82 million, is subject to fulfillment of customary adjustments.

The MarkeTouch Media acquisition is projected to extend Omnicell’s EnlivenHealth division’s footprint across the retail pharmacy sector while enhancing potential growth opportunities in specialty pharmacy and pharmacy benefits management market segments.

Strategic Significance of the Buyout

The MarkeTouch Media buyout will expand EnlivenHealth’s suite of software as a service (SaaS)-based solutions with the addition of mobile and web-based technology and patient engagement solutions. This is expected to result in a comprehensive offering that would assist pharmacies and health plans to thrive while improving their patients’ and members’ long-term health. Meanwhile, MarkeTouch Media’s longstanding pharmacy chain relationships will further expand EnlivenHealth’s national pharmacy network, allowing health plan partners to improve their members’ medication adherence and overall health outcomes while boosting plan performance and profitability.

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The addition of MarkeTouch Media is likely to bolster Omnicell’s Advanced Services portfolio and reinforce the company’s leadership position as a trusted technology partner for all sectors of pharmacy and related healthcare stakeholders.

Financial Significance of the Buyout

The MarkeTouch Media acquisition was concluded on Dec 31, 2021. The transaction was financed with cash available on Omnicell’s balance sheet, which is anticipated to be accretive to Omnicell’s non-GAAP EBITDA and non-GAAP earnings per share immediately.

It is worth noting that the MarkeTouch Media business registered approximately $14 million in total revenues (unaudited) for the 12 months ended Oct 31, 2021.

Industry Prospects

Per a report published in GLOBE NEWSWIRE, the Global Pharmacy Management Systems Market is expected to see a CAGR of around 10.5% from 2020 to 2027. Factors such as growing investment in research and development, adherence to information technology compliance in the pharmaceutical sector, several cost-reduction strategies employed by key players to help strengthen market position and an increasing number of prescriptions are driving the market.

Given the market prospects, Omnicell’s MarkeTouch Media acquisition seems strategic.

Notable Developments

In December 2021, Omnicell completed the previously announced (Dec 2) acquisition of ReCept Holdings, Inc. The buyout supports Omnicell’s Autonomous Pharmacy vision and is expected to broaden the company’s Advanced Services portfolio. The inclusion of ReCept’s specialty pharmacy management services for health systems, provider groups and federally qualified health centers has extended Omnicell’s Advanced Services portfolio to serve the growing and complex specialty pharmacy market.

In November 2021, the company partnered with Fresenius Kabi to bring new innovative pharmacy technology to U.S. hospitals and health systems to support safety and efficiency in dispensing controlled substances in patient care areas. This collaboration will combine Omnicell’s Controlled Substance Dispenser automation workflow with Fresenius Kabi Simplist MicroVault pre-filled syringes to offer healthcare providers advanced tools and technology for safe and efficient dispensing of controlled substances.

Share Price Performance

The stock has outperformed its industry over the past year. It has rallied 49.7% against the industry’s 40.1% decline.

Zacks Rank and Other Key Picks

Currently, Omnicell carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the broader medical space that investors can consider are Apollo Endosurgery, Inc. APEN, AMN Healthcare Services, Inc. AMN and Thermo Fisher Scientific Inc. TMO, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Apollo Endosurgery has a long-term earnings growth rate of 7%. The company‘s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 25.6%, on average.

Apollo Endosurgery has outperformed its industry in the past year. APEN has gained 135.3% compared with the industry’s 8.6% growth.

AMN Healthcarehas a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.

AMN Healthcare has outperformed its industry over the past year. AMN has gained 68.6% versus the 49.7% industry decline.

Thermo Fisher has a long-term earnings growth rate of 14%. The company’s earnings surpassed estimates in the trailing four quarters, delivering an average surprise of 9%.

Thermo Fisher has outperformed its industry in the past year. TMO has rallied 27.4% compared with the industry’s 8.7% rise.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.