Curative Health Services Announces Acquisition of Prescription City; Anticipates $0.03 Per Share Accretion for 2003.Business Editors/Health/Medical Writers HAUPPAUGE, N.Y.--(BUSINESS WIRE)--June 10, 2003 Curative Health Services health services Managed care The benefits covered under a health contract , Inc. (Nasdaq: CURE), announced today it has acquired the specialty pharmacy business of Prescription City, Inc. ("Prescription City") for a total consideration of approximately $17.5 million. Terms of the sale include $16.5 million in cash, with the remaining $1 million in a 1-year note. The Company expects the acquisition to add $0.03 to earnings per share in the second half of 2003. As a result, Curative has revised its guidance for 2003 and now anticipates adjusted net income per diluted share to be in the range of $1.46 - $1.52. This adjusted net income per diluted share guidance excludes a charge of $0.07 per diluted share in the first quarter of 2003 related to the consolidation of the Specialty Pharmacy operations, a charge of $0.05 per diluted share recorded in the first quarter of 2003 related to the termination of former executives in March of 2002, and a charge of $0.03-$0.04 per diluted share related to terminating its existing credit facility, which will be recorded in the second quarter of 2003. Thus the revised guidance for GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income per diluted share for the full year 2003 is in the $1.30 - $1.37 range. Prescription City, based in Spring Valley, New York Spring Valley is a village in Rockland County, New York, United States. The population was 25,464 at the 2000 census. The Village of Spring Valley is on the border of two towns and spans the east town line of the Town of Ramapo, which is the west town line of the Town , is a specialty pharmacy business specializing in the provision of chemotherapy and cancer drugs. Prescription City's service area includes southern New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and some areas of northeastern Pennsylvania. Drug therapies provided by Prescription City include Chemotherapy, HIV/AIDS HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome drugs, Synagis(R), IVIG IVIG Intravenous immunoglobulin, see there , pain management and Remicade(R). "This acquisition marks Curative's entry into the important oncology segment of the specialty pharmaceutical distribution market and positions us well for future growth as this field expands," said Joseph Feshbach, Curative's Chairman and Chief Executive Officer. "The core business for Prescription City is shipping oncology medication to physician offices where it is mixed by the oncology nurses and administered to the patient. We believe this distribution model will become the preferred oncolytics strategy for payors." Prescription City Q&A Q: What is Prescription City's business? A: Prescription City's main focus is in the field of oncology, the branch of medicine that deals with tumors, including study of their development, diagnosis, treatment, and prevention. This includes most cancers. Chemotherapy is Prescription City's largest product line. Other drug therapies also provided by Prescription City include HIV/AIDS drugs, Synagis(R), IVIG, pain management and Remicade(R). Q: How long has Prescription City been in business? A: Prescription City has spent the last 30 years working with patients receiving complex, high-cost drug therapies for conditions such as cancer, HIV/AIDS and infertility. Prescription City carries a full inventory of HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. , infertility and cancer medications, along with a complete line of hard-to-find drugs including progesterone progesterone (prōjĕs`tərōn'), female sex hormone that induces secretory changes in the lining of the uterus essential for successful implantation of a fertilized egg. suppository suppository /sup·pos·i·to·ry/ (su-poz´i-tor?e) an easily fusible medicated mass to be introduced into a body orifice, as the rectum, urethra, or vagina. sup·pos·i·to·ry n. , Synagis(R), Thalomid(R), IVIG and oncology injectables. Q: How does Prescription City provide its services? A: Prescription City ships oncology medication to physician offices where it is mixed by the oncology nurses and administered to the patient by the physician. Q: What is the Prescription City's service area? A: Prescription City's service area includes southern New York and some areas of northeastern Pennsylvania. The total population this area, including the New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. , is over 25 million. Prescription City can also ship prescriptions elsewhere in the United States. Q: How does Prescription City's business fit with Curative's existing Specialty Pharmacy Services business? A: The acquisition of Prescription City will strengthen some of our existing therapy offerings within our Specialty Pharmacy Services business unit such as Synagis(R), IVIG and Remicade(R), as well as provide Curative a foothold in another specialty pharmacy therapy line. Specifically, this acquisition gives Curative a strong presence in oncology, where the Company will have immediate scale to compete with the other specialty pharmacies. Q: Will Prescription City's management be staying with the Company? A: Key management will be retained under the terms of separately executed employment agreements. Q: Will Curative continue its acquisition strategy? A: Curative will continue to look for acquisitions which provide earnings accretion and provide enhanced shareholder value. About Curative Health Services Curative Health Services delivers superior clinical outcomes and unmatched patient satisfaction for patients experiencing serious medical conditions through two unique business units. Curative's Specialty Pharmacy Services business unit provides services to help patients manage the health care process, and offers related pharmacy products to patients for chronic and critical disease states including Hemophilia, Immune System immune system Cells, cell products, organs, and structures of the body involved in the detection and destruction of foreign invaders, such as bacteria, viruses, and cancer cells. Immunity is based on the system's ability to launch a defense against such invaders. Disorders, Respiratory Syncytial Virus respiratory syncytial virus (sĭnsĭsh`əl): see cold, common. (RSV RSV respiratory syncytial virus; Rous sarcoma virus. RSV abbr. respiratory syncytial virus RSV 1 Respiratory syncytial virus, see there 2 Rous sarcoma virus, see there ), Multiple Sclerosis and Rheumatoid Arthritis rheumatoid arthritis Chronic, progressive autoimmune disease causing connective-tissue inflammation, mostly in synovial joints. It can occur at any age, is more common in women, and has an unpredictable course. . Curative's Specialty Healthcare Services ("SHS SHS Shares (stock) SHS SAW (Surface Acoustic Wave) Humidity Sensor SHS Sciences Humaines et Sociales (French: Social Sciences) SHS Student Health Service SHS Second Hand Smoke ") business unit is an industry leader in chronic wound care management, consistently achieving an outcome success rate of more than 85 percent. SHS provides a broad continuum of services to health care providers through a nationwide network. This national network of hospital-based Wound Care Center(R) programs has offered comprehensive treatment to over 375,000 patients, achieving more than a 94 percent patient satisfaction rate. For more information, visit www.curative.com This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Factors that might cause such differences include, but are not limited to, the termination or non-renewal of a material number of contracts, an inability to obtain new contracts, changes in the government regulations relating to the Company's Specialty Healthcare Services or Specialty Pharmacy Services business units, changes in the regulations governing third party reimbursements for the Company's services, manufacturing shortages of products sold by Curative's Specialty Pharmacy Services business unit, and the other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. Readers of this release are referred to the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002 and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2003, for further discussion of these and other factors that could affect future results. Editors Note: This release is also available on the Internet over the World Wide Web at: http://www.curative.com |
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