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CVS Paying $10.4B in Cash for Drug Distributor Omnicare

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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)

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.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Business

Four Tips to Help You Plan a Holiday “Staycation”

“A great staycation starts when you treat your hometown like a destination – book one ‘anchor’ experience, stay somewhere that changes your scenery, and leave room for a little spontaneity,” said Steve Orens, President of FROSCH by Chase Travel, a leading travel agency. “My favorite staycation tip is to make it easy on yourself: choose a walkable area, plan one highlight each day, and let the hotel do the heavy lifting – warm beds, quick breaks, and fewer logistics.”

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Holiday travel can be exciting, but between costs, crowded airports and packed schedules, sometimes the idea of staying home can be much more appealing.

If you still want to get away without the hassle of an actual getaway, consider a holiday staycation.

By remaining close to home, you can experience your city from a fresh perspective without the stress of a long trip. Whether you book a night at a local hotel, check out a new neighborhood or just finally get around to seeing that landmark attraction that’s been on your to-do list, you can make staying at home feel like a real getaway.

Here are four tips you can use to create an amazing holiday at home this season:

1. Treat your hometown like a destination

One common theme surrounding area attractions is that they’re more likely to be packed with tourists than locals. If that popular museum, tour or other institution is always “there,” it can be easy to avoid it and say you’ll get there eventually.

A staycation provides a great opportunity to approach those kinds of places like a tourist. Start by making a short list of places or experiences you’ve always wanted to try but never seem to prioritize. You might include a museum, holiday market, historic site, restaurant or neighborhood, or you might attend a holiday-related performance that’s an annual late fall or winter tradition in your area.

“A great staycation starts when you treat your hometown like a destination – book one ‘anchor’ experience, stay somewhere that changes your scenery, and leave room for a little spontaneity,” said Steve Orens, President of FROSCH by Chase Travel, a leading travel agency. “My favorite staycation tip is to make it easy on yourself: choose a walkable area, plan one highlight each day, and let the hotel do the heavy lifting – warm beds, quick breaks, and fewer logistics.”

2. Spend the night away

A hotel stay can provide a change of scenery that makes you feel like you’re enjoying a getaway.

Consider a traditional hotel, bed and breakfast or rental property where you can walk to restaurants, shopping, entertainment or holiday activities. An upscale hotel can also be the centerpiece of your staycation, allowing you to enjoy fine dining, a fitness center, spa services or other on-site experiences.

If you want a quieter, more relaxed experience, find a hotel “off the beaten path,” but still close to home, to enjoy the rhythms and sounds of nature.

3. Be flexible

If your schedule allows, plan your staycation for a weekday or less crowded period — like the days between Christmas and New Year’s Eve — rather than a peak weekend. Hotel rates in the middle of the week tend to be cheaper, and it might be easier to grab a restaurant reservation or performance tickets. Locations might be less crowded as well during the week, making it easier to get around.

Book some experiences in advance to save money but stay open to spontaneous opportunities once you arrive. You might find some great last-minute deals.

4. Try something new

Even if you think you’ve seen everything your hometown has to offer, there’s always something new to explore or discover.

Check out a neighborhood you usually drive through and visit the local shops and other businesses. You can also try a new cuisine at a neighborhood restaurant or kitchen.

Sometimes what’s old can be new again during the holiday season, so if you want to go back to your favorite restaurants and other popular spots, do so with fresh eyes. Order from the eatery’s holiday menu or take a walk when lights, decorations and seasonal programming transform many communities.

Other helpful tips

Although staying at home can eliminate major travel costs, expenses can still add up quickly. Make a staycation budget and then consider ways to help keep costs down.

“A ‘smart’ staycation is one you can pay for comfortably: choose dates with better rates, book flexible options, and keep a small buffer for surprises,” added Orens. “The goal of a staycation is a real reset. Even if you’re close to home, give yourself permission to unplug and find moments to treat yourself – say yes to room service, a spa hour, or a new restaurant you’ve been saving for ‘someday.’”

If you have rewards points from credit cards or loyalty programs, put them toward your hotel to get a free or cheaper night’s stay. Local museums, cultural institutions and attractions often have resident discounts, reduced-price admission days or seasonal offers. Community calendars can provide information about free or low-cost events like holiday concerts, light displays, markets, park activities and other events. If a performance doesn’t normally sell out, wait until the day before or day of to buy tickets, as prices are often reduced and you can find great seats.

With a little creativity, you might find everything you’d want in a holiday vacation. You can enjoy good food, new experiences and an escape from your daily routine – all right at home.

For more financial health tips, visit https://www.chase.com/travel/guide.

For informational/educational purposes only: Views and strategies described in this article or provided via links may not be appropriate for everyone and are not intended as specific advice/recommendation for any business. Information has been obtained from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not warrant its completeness or accuracy. The material is not intended to provide legal, tax, or financial advice or to indicate the availability or suitability of any JPMorgan Chase Bank, N.A. product or service. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results. JPMorgan Chase & Co. and its affiliates are not responsible for, and do not provide or endorse third party products, services, or other content.

Deposit products provided by JPMorgan Chase Bank, N.A. Member FDIC. Equal Opportunity Lender.

 © 2026 JPMorgan Chase & Co.

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Business

Veterans Housing Project Proposed for South Richmond

According to the development team’s presentation, the project has an estimated total cost of nearly $158 million. The presentation outlines five phases encompassing entitlement and construction documents, community outreach, soil remediation and utility work, podium and building construction, solar technology integration, and interior buildouts.

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Artist’s rendering of the complex that will have xx units for veterans. Courtesy image.

A proposed mixed-use development at 338 Carlson Blvd. could bring hundreds of homes and support services for military veterans to South Richmond.

Led by the Richmond-based Veterans Resource Program in partnership with Eagle Environmental Construction & Development, the proposal covers an approximately 2.3-acre property the nonprofit acquired in 2018.

The proposal features a multi-building residential development with various apartment sizes, though city documents and developer materials cite conflicting totals ranging from 226 to 268 units.

The proposal also includes approximately 40,000 square feet of commercial and retail space, about 200 parking spaces, and an entrepreneurial training and job-development component intended to connect veterans with economic and workforce opportunities.

According to the development team’s presentation, the project has an estimated total cost of nearly $158 million. The presentation outlines five phases encompassing entitlement and construction documents, community outreach, soil remediation and utility work, podium and building construction, solar technology integration, and interior buildouts.

Founded in 2011, the Veterans Resource Program provides housing assistance and other services to veterans, including those experiencing homelessness or transitioning from incarceration.

The proposal aims to advance Richmond’s affordable housing goals while connecting veterans with housing and supportive services. Details of affordability and veteran eligibility remain to be clarified.

The Richmond City Council was scheduled to receive an informational presentation on the project at its Oct. 6 meeting, following a continuance from Sept. 22. The item does not seek project approval or city funding. Any future request for city financial assistance or other public resources would require separate consideration and approval.

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Marin County Supes Expand Small Business Options with Home Kitchen Pilot Program

“This will deliver immediate financial relief to entrepreneurs in areas like Marin City, West Marin and the Canal neighborhood, removing barriers right where economic opportunity is needed the most,” said Shannon Bell, consumer protection supervisor with Marin County Environmental Health Services, at the meeting.

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A plate of food is served in an undated photo. The Marin County Board of Supervisors adopted a three-year pilot program allowing cooks and food entrepreneurs to prepare and sell meals from their homes through the Microenterprise Home Kitchen Operation, or MEHKO, program. Mika Ruusunen/Marin County via Bay City News.

The Marin County Board of Supervisors adopted a three-year pilot program that will allow cooks and food entrepreneurs to prepare and sell meals from their homes on Sept. 29

The Microenterprise Home Kitchen Operation program, or MEHKO, will establish a permitting process for small-scale home food businesses. California state law allows licenses if local governments opt in.

“This will deliver immediate financial relief to entrepreneurs in areas like Marin City, West Marin and the Canal neighborhood, removing barriers right where economic opportunity is needed the most,” said Shannon Bell, consumer protection supervisor with Marin County Environmental Health Services, at the meeting.

MEHKO licenses fill the gap between cottage food permits, which only apply to non-potentially hazardous foods like baked goods and jams, and full commercial kitchens.

Microenterprises can serve as commissaries for up to two mobile food operations; they require food to be prepared and served the same day. They are exempt from commercial facility requirements, such as industrial grease traps and commercial stove hoods.

The program allows takeout or on-site dining with strict limits of 30 meals per day, or 90 meals per week, and an annual sales cap of $100,000.

The pilot would begin March 1, 2027, and permits would be capped at 100 per year. Application fees are $725 with an annual renewal fee of $414, but fee waivers for a third of the permits are reserved for low-income communities.

After two years, supervisors will consider making the program permanent.

“By eliminating the need for commercial leases and expensive equipment, entrepreneurs can safely test their businesses and ideas with minimal financial risk,” Bell said. According to statewide data from the Cook Alliance, 85% of MEHKO operators are women, immigrants, and people of color, and over 70% rely on this income to support their families, she said.

Bell also said unpermitted sales are already happening in areas like the Canal.

Local Vendors Seek a Legal Path

Marina Palma advocates for San Rafael’s Canal neighborhood, which is home to a vulnerable community of over 13,000 low-income residents. About 84% are Latino and roughly half of all households spend more than 50% of their income on housing.

Palma told the board that the pandemic caused many Canal residents to lose their jobs, and that’s why the neighborhood has so many vendors selling food in public. Because they have no license, enforcement actions can be harsh.

“They have really high tickets of $600, and their food has been thrown away,” said Palma.

She said MEHKO would help vendors get an official license, but she questions whether vendors will need a Social Security number and be legally in the country.

According to the home-chef’s national nonprofit Cook Alliance, MEHKO applicants need no proof of citizenship nor a Social Security number to obtain a permit.

“I’m from Mexico, and I’m one of the mobile vendors,” said Elsie Vega through a Spanish translator. “I have two jobs. Everything is pricey — house, food, everything. I am here to work hard, to pay taxes. I don’t make enough money to pay the community kitchens.”

MEHKO license holders must pass inspection under the oversight of the Marin County Department of Environmental Health Services and comply with local zoning, parking and noise ordinances.

California authorized MEHKO programs in 2019. Seventeen counties have since adopted them, including Sonoma, San Mateo, Solano, Contra Costa, Alameda and Santa Clara counties.

Other commenters who spoke in favor of the program represented a range of food system and small business organizations. They included the Agricultural Institute of Marin, which operates nine Bay Area farmers markets, the University of California Cooperative Extension, the Cook Alliance, the West Marin Food Systems Group, which coordinates farm-to-school food access, and the Marin Small Business Development Center.

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