DIAGNOSTEK PURCHASES HIV AIDS SPECIALTY PHARMACY COMPANY
ALBUQUERQUE, N.M., Oct. 27 /PRNewswire/ -- Diagnostek, Inc. (NYSE: DXK), announced today the acquisition of Chronitech Health Services, Inc., a provider of specialty pharmacy, homecare medication and infusion services to the HIV and AIDS market. The acquisition is valued at approximately $9 million in cash and Diagnostek stock, of which $3 million has been placed in escrow pending achievement of certain operating targets. Chronitech operates two specialty AIDS retail pharmacies in San Francisco. These retail pharmacies are a model for dispensing oral medications to HIV patients, utilizing high volume automated dispensing equipment. Comprehensive patient education, counseling and advocacy programs are provided, in addition to assistance with billing and insurance reimbursement. Chronitech, through a joint venture with Olsten-Kimberly Quality Care, Inc. (AMEX: OLS), provides medication to home-bound patients with HIV and AIDS in the San Francisco Bay area. This agreement now allows Diagnostek to provide oral medications and related homecare services through Olsten-Kimberly Quality Care's home nursing programs. Diagnostek will also be providing infusion and medical supplies to Olsten-Kimberly Quality Care in the western United States. Additionally, Diagnostek assumes Chronitech's alternative site medication dispensing contracts in the San Francisco and Los Angeles areas. Diagnostek estimates that the acquisition and anticipated joint venture business will generate fiscal 1994 revenues of more than $40 million. "This acquisition enables Diagnostek to respond quickly to the growing need for quality, reliable specialized pharmacy services," said Nunzio DeSantis, Diagnostek's chairman and chief executive officer. "The prescription market for HIV and AIDS is largely unmanaged. We'll coordinate pharmacy care in accordance with our managed care philosophy, emphasizing choice, clinical pharmacy expertise and comprehensive information management." According to the Centers for Disease Control, approximately 1 million Americans live with HIV, and more than 10 percent of those individuals are diagnosed as having AIDS. "Prescription drug bills for AIDS patients are staggering, often exceeding $10,000 per person annually," said DeSantis. "Our RxChoice prescription program offers affordable accessible pharmacy care, with a premium on service and quality. We're extremely pleased to be able to extend our help to those people suffering from HIV and AIDS." RxChoice is a point-of-service managed care prescription drug program that allows patients to fill prescriptions at a national preferred retail pharmacy network. Patients also fill maintenance prescriptions through Diagnostek's state-of-the-art mail service pharmacies. This is a key benefit for individuals on long-term AIDS-related drug therapies. Paul Morabito, Chronitech's founder and president, joins Diagnostek as senior vice president, corporate development. Diagnostek manages prescription drug benefits for Fortune 500 corporations, HMOs, PPOs and national labor unions. In addition, Diagnostek provides pharmacy management services to more than 200 acute-care hospitals and HMOs nationwide. -0- 10/27/93 CONTACT: David Jones of Diagnostek, Inc., 505-345-8080, or Fredric Spar of Kekst and Company, 212-593-2655 (DXK OLS) CO: DIAGNOSTEK, INC.; CHRONITECH HEALTH SERVICES, INC.; OLSTEN-KIMBERLY QUALITY CARE, INC.
IN: MTC SU: TNM JVN ST: NM,CA
-- NY027 -- X395 10/27/93
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|Date:||Oct 27, 1993|
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