Option Care Health falls on Amedisys's deal

Amedisys

04/05/2023 18:09

** Shares of infusion therapy services provider Option Care
Health Inc  OPCH.O  fall 23.1% to more than one-year low of
$25.23
    ** Stock set for its biggest one-day pct. loss in more than
three years
    ** Co said late on Wednesday it is acquiring home health and
hospice co Amedisys Inc  AMED.O  in all-stock deal valued at
$3.6 billion 
    ** Analysts, however, say the deal is not without risk due
to Amedisys's execution concerns 
    ** We recognize some investors' concerns about the
introduction of medicare rate risk to what was previously viewed
as a "clean" OPCH story - Jefferies
    ** "Option Care was viewed by many investors as a reliable
executor and safe haven amid the reimbursement volatility, payer
battles, and labor pressures experienced by many companies in
the space over the past several years—and this deal now brings
it firmly into the crosshairs of those issues," says William
Blair
    ** Including session losses, stock down ~16% YTD

 (Reporting by Sriparna Roy in Bengaluru)
 ((Sriparna.Roy@thomsonreuters.com;))