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news.BioScrip, a specialty pharmaceutical healthcare organization, has announced that UnitedHealthcare, a UnitedHealth Group company, has notified the company of its intention to internalize services for HIV/AIDS and solid organ transplant drugs for United members effective January 31, 2009 and March 31, 2009, respectively.
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This contract termination will have no impact on 2008 operating results. For 2009, BioScrip expects a loss of revenue of $100 million and a loss of $2 million of operating income associated with this contract.
The company has also stated that it believes that the lost profit from exiting both the United agreement and the previously announced Aetna business, along with the benefit of exiting its CAP business, will result in an aggregate decrease in operating profit of approximately $1.5 million for 2009.
The company also expects that the decline in profitability will be positively impacted by the implementation of a detailed cost reduction plan and the impact of additional new sales and contracts associated with its business segments.
Richard Friedman, chairman and CEO of BioScrip, said: “Although we are disappointed with United’s decision to internalize its HIV/AIDS and solid organ transplant services, we believe that we have a solid pipeline of opportunities from which to continue to grow our business and increase our profitability.”