OPCH

Option Care Health Inc.

Healthcare


Presented:10/22/2020
Price:$13.69
Cap:$2.56B
Current Price:$30.61
Cap:$5.24B

Presented

Date10/22/2020
Price$13.69
Market Cap$2.56B
Ent Value$3.69B
P/E RatioN/A
Book Value$4.91
Div Yield0%
Shares O/S186.72M
Ave Daily Vol807,694
Short IntN/A

Current

Price$30.61
Market Cap$5.24B
Option Care Health, Inc. provides home and alternate site infusion services. The firm's infusion services include the clinical management of infusion therapy, nursing support and care coordination. It also offers Therapeutic Services like Anti-Infectives, Nutrition Support, Heart Failure, Chronic Inflammatory Disorders, Immunoglobulin, Bleeding Disorders, Women's Health, Neurological Disorders and Specialized Therapies. The company was founded in 1996 and is headquartered in Bannockburn, IL.

Publicly traded companies mentioned herein: Amedisys Inc (AMED), Chemed Corp (CHE), LHC Group Inc (LHCG), Moody’s Corp (MCO), Option Care Health Inc (OPCH)

Highlights

The presenter is long shares of Option Care Health Inc (OPCH), which offers in-home nursing assistance for IV medications (e.g., cancer pains, Crohn’s Disease, immune deficiencies, etc.). The business was created last August through a merger of the number two and three players, Option Care and BioScrip. Today, OPCH is the number one player in home infusion with a market share of 20% and growing. The stock traded at ~$18 per share heading into COVID-19, troughed at ~$6 in March, rebounded to ~$17 in the summer, then traded to $11 following a secondary offering of 18MM shares in July at $12.50 per share (sub optimal execution in his opinion). OPCH currently trades at ~$14 per share (~40% discount to peer group), but the presenter is targeting a $20 – $25 share price over the next ~12 months based on several catalysts. Further, he expects an eventual sale of the business in the next ~18 months.

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