NeighborCare buys Woodhaven pharmacy firm

September 15, 1994|By Patricia Meisol | Patricia Meisol,Sun Staff Writer

NeighborCare Pharmacies Inc., said yesterday that it has acquired the No. 1 institutional pharmacy company in Maryland, Woodhaven Institutional Services, giving it a lock on an estimated 45 percent of the drug supply business to small and independent long-term care facilities.

The privately owned Baltimore company also acquired a sister company, Woodhaven Infusion Services Inc., making it the largest provider of home drug therapy services in the state, serving 300 to 350 people a day, said Michael Bronfein, president and chief executive officer of NeighborCare.

Terms of the purchase were not disclosed.

Woodhaven was founded in 1954 by Mayer Handelman, who signed an agreement to serve five years as president of what will become a division of NeighborCare, the company said. The Handelmans' lone retail store, Woodhaven Pharmacy in Towson, was not included in the sale.

The new division will serve about 10,000 of the estimated 21,000 nursing home beds in Maryland not owned by or served by national nursing home companies, Mr. Bronfein said.

NeighborCare, which owns 24 pharmacies based mainly in medical buildings and operates a home infusion business, supplied drugs to about 3,000 nursing home beds before the purchase.

The deal makes it possible for NeighborCare, which had revenues of $31 million for the year ended June 30, to expand state-of-the-art services, including information technology, as well as to increase market share, Mr. Bronfein said.

Because of the economies of scale that come with the additional beds, he said, NeighborCare can give smaller nursing homes "the same advantages that a Manor Care or Genesis has through their pharmacies."

Both Manor Care Inc. and Genesis Health Ventures Inc., the largest nursing home operator in Maryland, and its subsidiary drug companies, also supply drugs to long-term care facilities, including their own nursing homes. Together they serve an estimated 5,000 beds in Maryland.

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