Transcript
November 03, 2009 01:30 PM Eastern Time
Omnicare Completes Voluntary Settlement Agreement
COVINGTON, Ky.--(BUSINESS WIRE)--Omnicare, Inc. (NYSE:OCR) today announced
that it has finalized a previously disclosed agreement in principle for a voluntary civil
settlement with the U.S. Attorney’s Office, District of Massachusetts, the Departments of
Justice and Health and Human Services, as well as various of the states in which the
Company does business. The settlement relates to the previously disclosed
investigation with respect to qui tam complaints filed against the Company. The
Company cooperated fully with the review of these matters and is pleased to have
reached a resolution.
The Settlement Agreement does not include any finding of wrongdoing or any
admission of liability by Omnicare. The Company denies the contentions of the federal
government and the qui tam relators as set forth in the complaints and further denies
any liability related to those contentions. The allegations include claims that the
Company purportedly purchased a medical supply business at an above-market price to
induce the referral of business; allegedly received improper payments from
pharmaceutical manufacturers; and purportedly provided consultant pharmacist
services to customers at below cost and fair market value to induce the referral of
business. The Company agreed to settle the matters in order to avoid expensive and
time-consuming litigation and to focus on its mission of providing high-quality
pharmaceutical care for the frail elderly.
Under the terms of the Settlement Agreement, Omnicare has agreed to pay $98 million
plus interest (from June 24, 2009, the date of the aforementioned agreement in
principle) to the federal government and the participating states and the District of
Columbia and related expenses. Consistent with previous disclosure, this amount has
been reserved by Omnicare. Omnicare has also voluntarily entered into an Amended
and Restated Corporate Integrity Agreement (CIA) with the Department of Health and
Human Services. The CIA will be in effect for a period of five years and provides for,
among other things, training and oversight to demonstrate Omnicare’s commitment to
comply with the applicable laws and regulations governing pharmacies.
About Omnicare
Omnicare, Inc. (NYSE:OCR), a Fortune 500 company based in Covington, Kentucky, is
a leading provider of pharmaceutical care for the elderly. Omnicare serves residents in
long-term care facilities, chronic care and other settings comprising approximately 1.4
million beds in 47 states, the District of Columbia and Canada. Omnicare is the largest
U.S. provider of professional pharmacy, related consulting and data management
services for skilled nursing, assisted living and other institutional healthcare providers as
well as for hospice patients in homecare and other settings. Omnicare’s pharmacy
services also include distribution and patient assistance services for specialty
pharmaceuticals. Omnicare offers clinical research services for the pharmaceutical and
biotechnology industries in 31 countries worldwide.
For more information on Omnicare, visit www.omnicare.com.
Forward-Looking Statements
In addition to historical information, this press release contains certain statements that
constitute “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include, but are not
limited to, all statements regarding the intent, belief or current expectations regarding
the matters discussed or incorporated by reference in this document (including
statements as to “beliefs,” “expectations,” “anticipations,” “intentions” or similar words)
and all statements which are not statements of historical fact. Such forward-looking
statements, together with other statements that are not historical, are based on
management’s current expectations and involve known and unknown risks,
uncertainties, contingencies and other factors that could cause results, performance or
achievements to differ materially from those stated. The most significant of these risks
and uncertainties are described in the Company’s Form 10-K, Form 10-Q and Form 8-K
reports filed with the Securities and Exchange Commission and include, but are not
limited to: overall economic, financial, political and business conditions; trends in the
long-term healthcare, pharmaceutical and contract research industries; the ability to
attract new clients and service contracts and retain existing clients and service
contracts; the ability to consummate pending acquisitions; trends for the continued
growth of the Company’s businesses; trends in drug pricing; delays and reductions in
reimbursement by the government and other payors to customers and to the Company;
the overall financial condition of the Company’s customers and the ability of the
Company to assess and react to such financial condition of its customers; the ability of
vendors and business partners to continue to provide products and services to the
Company; the continued successful integration of acquired companies; the continued
availability of suitable acquisition candidates; the ability to attract and retain needed
management; competition for qualified staff in the healthcare industry; the demand for
the Company’s products and services; variations in costs or expenses; the ability to
implement productivity, consolidation and cost reduction efforts and to realize
anticipated benefits; the ability of clinical research projects to produce revenues in
future periods; the potential impact of legislation, government regulations, and other
government action and/or executive orders, including those relating to Medicare Part D,
including its implementing regulations and any subregulatory guidance, reimbursement
and drug pricing policies and changes in the interpretation and application of such
policies, including changes in the calculation of average wholesale price; government
budgetary pressures and shifting priorities; federal and state budget shortfalls; efforts by
payors to control costs; changes to or termination of the Company’s contracts with
Medicare Part D plan sponsors or to the proportion of the Company’s Part D business
covered by specific contracts; the outcome of litigation; potential liability for losses not
covered by, or in excess of, insurance; the impact of differences in actuarial
assumptions and estimates as compared to eventual outcomes; events or
circumstances which result in an impairment of assets, including but not limited to,
goodwill and identifiable intangible assets; the final outcome of divestiture activities;
market conditions; the outcome of audit, compliance, administrative, regulatory or
investigatory reviews; volatility in the market for the Company’s stock and in the
financial markets generally; access to adequate capital and financing; changes in
international economic and political conditions and currency fluctuations between the
U.S. dollar and other currencies; changes in tax laws and regulations; changes in
accounting rules and standards; and costs to comply with the Company’s Corporate
Integrity Agreements. Should one or more of these risks or uncertainties materialize or
should underlying assumptions prove incorrect, the Company’s actual results,
performance or achievements could differ materially from those expressed in, or implied
by, such forward-looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date hereof. Except as
otherwise required by law, the Company does not undertake any obligation to publicly
release any revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contacts
Omnicare, Inc.
Cheryl D. Hodges, 859-392-3331