Omnicell to Acquire ReCept for $100M

Medication management solutions provider Omnicell, Inc. (OMCL) recently revealed that it has entered into a definitive agreement to acquire a specialty pharmacy management services provider, ReCept Holdings, Inc., for $100 million.

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Following the news, shares of the company rose marginally to close at $177.11 in Thursday’s extended trading session.

Implications of the Deal

The addition of ReCept Holdings to Omnicell’s portfolio will allow the company to broaden its offerings in the specialty pharmacy management services space.

ReCept reported total revenues of about $24 million for the 12 months ended September 30, 2021.

Omncell expects the transaction to be accretive to its non-GAAP EBITDA beginning in the first quarter of 2023.

Management Commentary

The CEO of Omnicell, Randall Lipps, said, “The ReCept acquisition is a strategic investment that expands our portfolio to address the significant market need for specialty pharmacy solutions. Our entry into this rapidly expanding area of practice is a natural progression on the path to the Autonomous Pharmacy and the goal to enhance care, improve efficiency, and drive profitability.”

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Price Target

On December 2, Piper Sandler analyst Sean Wieland reiterated a Buy rating on the stock with a price target of $211, which implies upside potential of 19.1% from current levels.

According to the analyst, the prevailing market demand for the company’s products, winning new clients and growing existing ones bode well for the company.

The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 4 Buys and 2 Holds. The average Omnicell price target of $185.33 implies that the stock has upside potential of 4.6% from current levels.

Smart Score

Omnicell scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to outperform market expectations. Shares have gained 69.7% over the past year.