PPM/MSO NEWS
September 27, 1999 2 minutes read
PPM/MSO NEWS
• Physician’s Specialty Corp. (Atlanta) acquired Physicians For Pulmonary & Critical Care (PPCC; Cleveland) for an undisclosed sum, reported Dow Jones News Service. Physician’s Specialty said PPCC has grown to include 10 physicians practicing at 12 greater-Cleveland locations. As previously announced, Physician’s Specialty has executed a definitive merger agreement with a new company formed by TA Associates. Under the terms of the proposed merger, each outstanding share of Physician’s Specialty common stock, other than certain shares held by management and certain affiliated physicians, will be converted in to the right to receive $10.50 per share in cash. The proposed transaction is subject to a variety of conditions and is anticipated to close in 4Q99. Upon consummation of the merger, Physician’s Specialty will cease to be a publicly traded company. "The affiliation furthers our objective of developing premier airway disease management delivery networks in select geographic markets by integrating ENT practices, along with related specialists practicing in the fields of allergy, pulmonology, and sleep medicine," said Physicians’ Specialty Chairman/President.
• Innovative Clinical Solutions (Providence, RI) signed a service agreement with Swiss pharmaceutical company Novartis AG’s Novartis Pharmaceuticals Corp., under which the companies will collaborate on clinical research, disease management, physician education, and other projects. Innovative said its clinical studies division will conduct Phase I-IV research for Novartis in multiple therapeutic areas, focusing on central nervous system research. In other news, Innovative Clinical Solutions reported a net loss for 2Q99 ended July 31 of $79.2 million, $2.38 per share, compared to a net income in 2Q98 of $51,000, 0 cents per share. The company recorded revenues of $49.9 million, compared to $77.4 million in 2Q98.
• MedPartners (Birmingham, AL) has changed its name to Caremark Rx to reflect the divestiture of its physician practice management assets, which it has nearly completed. Caremark will focus on its pharmaceutical services operations. It will trade under the symbol CMX, effective Sept. 20. Some analysts on Wall Street, despite the redefining the company has been working to complete, say the company may have changed clothes, but it still has the same rickety body underneath, reported Dow Jones News Service. The problem is that it is highly leveraged, even after the sale of most of its PPM business, analysts say. Some investors are refocusing on the leverage issue with Caremark because of a private placement of convertible preferred stock the company is shoping around Wall Street and hopes to sell possibly this week, Dow Jones reported.
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