Boston, MA 04/08/2014 (wallstreetpr) – BioScrip Inc (NASDAQ:BIOS) is a provider of home-based treatment environment. The company works alongside physicians, hospitals and pharmaceuticals towards providing more effective clinical management services.
The company primarily coordinates with patient’s doctors in providing its clinical solution in home or community-base environment. Thus, the company employs nurses, therapists and pharmacists to effectively deliver its clinical management solutions.
Although the business presents many growth opportunities as demand for healthcare increases amid high number of senior citizens, the company is not alone in the field. In other words, BioScrip Inc (NASDAQ:BIOS) faces competition in the business; and this means that delivery of the best services, expanding service network and reigning in on costs and expenses are necessary to ensure better performance.
Assets divestment
Therefore, the company recently divested its two businesses operating as Elk Valley Health Services and Deaconess HomeCare. The businesses were sold to LHC Group Inc. The company announced the closing of the deal to sell Deaconess whereby it generated proceeds amounting to $60 million.
Following the transaction to divest the two assets, BioScrip Inc (NASDAQ:BIOS) stated that it was able to boost its financial position. Moreover, the CEO Rick Smith observed that they will now be able to focus more on core operations for growth and driving more shareholder value.
Although the company already boasts solid reputation in the home infusion services industry, there is still more to be done to optimize value of the existing assets. Full optimization of assets will enable BioScrip Inc (NASDAQ:BIOS) to not only remain at the leadership position in the home fusion industry, but also achieve greater value for the investors in a booming market.
The company announced that it will use the net proceeds from the sale of its two businesses in settling some of its outstanding debt. The company is also expected to use it enhanced financial flexibility to improve working capital, make strategic acquisitions and even expand its market share.
To sum up
There are several reasons to believe that BioScrip Inc (NASDAQ:BIOS) is fast turning the corner. The company is looking to expand business network, increase revenue and take more cost and expenses controls. These should result in earnings and stock price growth.
Shares of the $486 million company have shown decent momentum in recent times. If the restructuring efforts being undertaken are anything to go by, there seems to be more room for the stock to continue the trend.
