Wendy Marcari, Member of the Firm Health Care & Life Sciences practice, in the firm’s New York office, was quoted in Health Payer Specialist, in “CVS Will Have Better Luck Selling Omnicare After Bankruptcy Filing,” by Peter Johnson. (Read the full version – subscription required.)
Following is an excerpt:
CVS Health will field serious offers for parts of Omnicare after the pharmacy leaves Chapter 11 bankruptcy protection, industry watchers said. CVS, which had previously attempted to sell the asset in 2023, will have more luck with a sale than it did in 2023, when it previously put the long-term care pharmacy up for sale—although the company will likely be sold off in pieces. …
Wendy Marcari, an attorney and partner at Epstein Becker Green, added that the resolution of Omnicare's legal troubles will make its components more appealing to buyers. Last month, a federal judge fined Omnicare nearly $1 billion for Medicare prescription fraud.
In bankruptcy filings, Omnicare cited the judgment as the main reason it sought Chapter 11 protection. The judgment is not final—CVS has petitioned for either an appeal or retrial—but the bankruptcy indicates that the company sees those legal maneuvers as longshots.
If the judgment does hold, sales of component parts of the business could finance paying down the judgment, and leave buyers free and clear of Omnicare's liability.
"They're going to generate a higher price now that they're in bankruptcy, because the buyer isn't going to get stuck with the judgment," Marcari said. Previously, the unresolved litigation represented a significant risk to potential buyers, she added. …
