Business

CVS Paying $10.4B in Cash for Drug Distributor Omnicare

Published

11 years ago

May 21, 2015

This March 25, 2014, file photo, shows a CVS store in Philadelphia. CVS Health will buy Omnicare in a deal valued at about $12.7 billion in move to expand its pharmacy services reach into assisted living and senior care facilities. (AP Photo/Matt Rourke, File)

TOM MURPHY, AP Business Writer

CVS Health will pay more than $10 billion for pharmaceutical distributor Omnicare in a deal primed to feed its fast-growing specialty drug business and tap a lucrative and growing market: care for the elderly.

The acquisition announced Thursday will give one of the biggest U.S. pharmacy benefits managers national reach in dispensing prescription drugs to assisted living and skilled nursing homes, long-term care facilities, hospitals and other care providers. Omnicare’s long-term care business operates in 47 states and the District of Columbia.

The deal also will bring in more business doling out specialty drugs. These complex and expensive medications for cancer, hepatitis C and other conditions can represent treatment breakthroughs but are raising growing concerns over cost. Insurers and other bill payers want help containing that expense.

Specialty drug revenue soared 46 percent for CVS Health in the first quarter, helping the company trump analyst expectations and make up for a sales hit from its decision to stop selling tobacco products last year in its drugstores. CVS Health also runs the nation’s second largest drugstore chain, trailing only Wagreens Boots Alliance Inc.

Cincinnati-based Omnicare’s core business involves distributing drugs and providing pharmacy services to long-term care providers, a market CVS Health doesn’t currently serve.

CVS Health CEO Larry Merlo told analysts that represents a “substantial growth opportunity” for his company, with the U.S. population aging.

U.S. Census Bureau researchers have predicted that the population age 65 and older will approach 84 million people by 2050, nearly double its total in 2012, due largely to the aging baby-boom generation.

Merlo noted that older people are more likely to take several medications and can have trouble making sure their prescriptions follow them as they move from their own home to long-term care or other settings. He believes his company can help ease these transitions.

“Omnicare significantly expands our business and provides us with access into a new pharmacy dispensing channel,” Merlo said.

CVS Health said Thursday that it would spend $98 in cash for each Omnicare share. The total value of the deal, expected to close later this year, is $12.7 billion counting about $2.3 billion in debt.

Omnicare has shelled out millions of dollars in recent years to settle federal lawsuits over kickback allegations.

Last June, it agreed to pay more than $124 million to settle lawsuits alleging it gave kickbacks to some facilities so they would keep the company as their drug provider for elderly Medicare and Medicaid recipients. Omnicare said it settled the case to end litigation and committed no wrongdoing.

In 2009, Omnicare said it would pay $98 million to settle allegations that it solicited or paid a variety of kickbacks. That included an accusation that it received kickbacks from Johnson & Johnson for recommending that doctors prescribe to nursing home patients the antipsychotic Risperdal, which can hasten death in elderly people with dementia.

In December, the U.S. Department of Justice filed another lawsuit against Omnicare alleging that it received millions of dollars in kickbacks from Abbott Laboratories in exchange for buying and recommending the prescription anti-seizure drug Depakote for controlling behavior problems in nursing home patients with dementia.

CVS Health spokeswoman Carolyn Castel said in an email that these cases amounted to “legacy issues,” and Omnicare management has worked “diligently over the past few years to create a new foundation around regulatory and compliance matters.”

An Omnicare representative did not immediately return a call from The Associated Press seeking comment about the litigation.

Shares of Woonsocket, Rhode Island-based CVS Health Corp. climbed 2.2 percent, or $2.21, to $103.48 in Thursday afternoon trading, while broader indexes edged up slightly. Omnicare Inc. shares advanced $1.63 to $96.26.

___

AP Business Writer Damian J. Troise contributed to this story from New York. Murphy reported from Indianapolis.

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CITY OF SAN LEANDRO STATE OF CALIFORNIA PUBLIC WORKS DEPARTMENT ENGINEERING DIVISION NOTICE TO BIDDERS FOR ANNUAL STREET OVERLAY/REHABILITATION 2019-21 – PHASE III

WORK DESCRIPTION: The work to be done consists of roadway paving, base cement stabilization, concrete curb ramps, driveways, sidewalks, curbs and gutters, traffic detection loops and pavement striping, and doing all appurtenant work in place and ready for use, all as shown on the plans and described in the specifications with the title indicated in Paragraph 1 above, and on file in the office of the City Engineer. Reference to said plans and specifications is hereby made for further particulars.

Published

1 day ago

February 20, 2026

Oakland Post

PROJECT NO. 2020.0050

BID NO. 25-26.011

BID OPENING: The bidder shall complete the “Proposal to the City of San Leandro” form contained in the Contract Book. The proposal shall be submitted in its entirety. Incomplete proposals will be considered non-responsive. Sealed bids containing the completed Proposal Section subject to the conditions named herein and in the specifications for ANNUAL STREET OVERLAY/REHABILITATION 2019-21 – PHASE III/PROJECT NO. 2020.0050 addressed to the City of San Leandro will be received at City Hall, 835 East 14^th Street, 2^nd Floor San Leandro at the office of the City Clerk up to 3:00 p.m. on Thursday, March 19, 2026, at which time they will be publicly opened and read.
WORK DESCRIPTION: The work to be done consists of roadway paving, base cement stabilization, concrete curb ramps, driveways, sidewalks, curbs and gutters, traffic detection loops and pavement striping, and doing all appurtenant work in place and ready for use, all as shown on the plans and described in the specifications with the title indicated in Paragraph 1 above, and on file in the office of the City Engineer. Reference to said plans and specifications is hereby made for further particulars.
OBTAINING THE PROJECT PLANS AND CONTRACT BOOK: The project plans and Contract Book may be obtained free of charge from the City’s website at:https://www.sanleandro.org/Bids.aspx Bidders who download the plans are encouraged to contact the City of San Leandro Public Works Department Engineering division at 510-577-3428 to be placed on the project planholder’s list to receive courtesy notifications of addenda and other project information. Project addenda, if any, will be posted on the website. A bidder who fails to address all project addenda in its proposal may be deemed non-responsive.Bidders may also purchase the Project Plans and Contract Book from East Bay Blueprint & Supply Co., at 1745 14^th Street, Oakland, CA 94606; Phone Number: (510) 261-2990 or email: ebbp@eastbayblueprint.com.
PRE-BID CONFERENCE: A mandatory pre-bid conference will be held on Tuesday, February 24, 2026, at 2:00 PM and on Wednesday, February 25, 2026, at 10:00 AM as follows:
Tuesday, February 24, 2026, at 2:00 PM
Zoom Meeting ID: 883 8752 6074
Passcode: 502955
Zoom Link: https://sanleandro-org.zoom.us/j/88387526074?pwd=hZ5rjB8AWdLAUem3CtByFiZxqKarHj.1
And
Wednesday, February 25, 2026, at 10:00 AM
Zoom Meeting ID: 898 2672 0472
Passcode: 091848
Zoom Link: https://sanleandro-org.zoom.us/j/89826720472?pwd=JgZX2nXMpLSRM5xDPr7EJUxl7QIznr.1The information presented at the conferences will be identical, all bidders must attend one of the pre-bid conference and sign the attendance sheet. A firm that didn’t attend the pre-bid conference isn’t qualified to bid on the project.Questions regarding the plans and specifications may be submitted in writing to the project engineer until 5:00 p.m. five (5) days before, excluding Saturdays, Sundays and Holidays, bids must be received by the City. The City will not respond to oral questions outside of the pre-bid conference. The response, if any, will be by written addendum only. Oral responses do not constitute a revision to these plans or specifications.
VALUE OF WORK: The Engineer has estimated that the value of work is between $1,000,000 and $5,000,000.
SAN LEANDRO BUSINESS PREFERENCE AND PARTICIPATION GOALS: The work performed under this contract is subject to Section 1-6-225 of the San Leandro Municipal Code regarding local business preference and participation. A list of companies that hold a San Leandro business license is located on the City webpage under the finance department, here: https://www.sanleandro.org/340/Business-License
SAN LEANDRO COMMUNITY WORKFORCE AGREEMENT: The work performed under this contract is subject to the Community Workforce Agreement adopted by City Council Resolution 2015-104. Contractors attention is directed to Section 10.

Dated: February 13, 2026 Sarah Bunting, City Clerk

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Oakland Post: Week of February 11 = 17, 2026

The printed Weekly Edition of the Oakland Post: Week of – February 11 – 17, 2026

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6 days ago

February 16, 2026

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Rising Optimism Among Small And Middle Market Business Leaders Suggests Growth for California

“Business leaders across the Pacific region continue to demonstrate a unique blend of resilience and forward-thinking, even in the face of ongoing economic uncertainty,” said Brennon Crist, Managing Director and Head of the Pacific Segment, Commercial Banking, J.P. Morgan. “Their commitment to innovation and growth is evident in the way they adapt to challenges and seize new opportunities. It’s this spirit that keeps our region at the forefront of business leadership and progress. We look forward to helping our clients navigate all that’s ahead in 2026.”

Published

1 week ago

February 14, 2026

Oakland Post

Super Scout / E+ with Getty Images.

Sponsored by JPMorganChase

Business optimism is returning for small and midsize business leaders at the start of 2026, fueling confidence and growth plans.

The 2026 Business Leaders Outlook survey, released in January by JPMorganChase reveals a turnaround from last June, when economic headwinds and uncertainty about shifting policies and tariffs caused some leaders to put their business plans on hold.

Midsize companies, who often find themselves more exposed to geopolitical shifts and policy changes, experienced a significant dip in business and economic confidence in June of 2025. As they have become more comfortable with the complexities of today’s environment, we are seeing optimism rebounding in the middle market nationwide – an encouraging sign for growth, hiring, and innovation. Small businesses, meanwhile, maintained steady optimism throughout 2025, but they aren’t shielded from domestic concerns. Many cited inflation and wage pressures as the top challenges for 2026 and are taking steps to ensure their businesses are prepared for what’s ahead.

Overall, both small and midsize business leaders are feeling more confident to pursue growth opportunities, embrace emerging technologies and, in some cases, forge new strategic partnerships. That bodes well for entrepreneurs in California. Here are a few other key findings from the Business Leaders Outlook about trends expected to drive activity this year:

Inflation remains the top concern for small business owners. Following the 2024 U.S. presidential election, many anticipated a favorable business environment. By June 2025, however, that feeling shifted amid concerns about political dynamics, tariffs, evolving regulations and global economic headwinds.
Going into 2026, 37% of respondents cited inflation as their top concern. Rising taxes came in second at 27% and the impact of tariffs was third at 22%. Other concerns included managing cash flow, hiring and labor costs.

For middle market leaders, uncertainty remains an issue. Almost half (49%) of all midsize business leaders surveyed cited “economic uncertainty” as their top concern – even with an improved outlook from a few months ago. Revenue and sales growth was second at 33%, while tariffs and labor both were third at 31%.
And tariffs are impacting businesses costs. Sixty-one percent of midsize business leaders said tariffs have had a negative impact on the cost of doing business.
Despite challenges, leaders are bullish on their own enterprises. Though the overall outlook is mixed, 74% of small business owners and 71% of middle market companies are optimistic about their company’s prospects for 2026.
Adaption is the theme. For small business owners surveyed across the U.S., responding to continuing pressures is important in 2026. Building cash reserves (47%), renegotiating supplier terms (36%) and ramping up investments in marketing and technology are among the top priorities.
Big plans are on the horizon. A majority midsized company leaders expect revenue growth this year, and nearly three out of five of (58%) plan to introduce new products or services in the coming year, while 53% look to expand into new domestic and/or international markets. Forty-nine percentsay they’re pursuing strategic partnerships or investments.

The bottom line

Rebounding optimism among U.S. business leaders at the start of the year is setting the stage for an active 2026. With business leaders looking to implement ambitious growth plans that position themselves for the future, momentum in California could be beneficial for leaders looking to launch, grow or scale their business this year.