Omnicare Initiates Voluntary Chapter 11 Process
Omnicare, a subsidiary of CVS Health (NYSE: CVS), has initiated voluntary Chapter 11 bankruptcy proceedings in response to litigation challenges and industry-wide financial pressures. The company has secured $110 million in debtor-in-possession financing to maintain operations during the restructuring process.
The bankruptcy filing follows a court ruling in the U.S. District Court for the Southern District of New York regarding alleged technical violations of pharmacy law. Omnicare plans to use this process to evaluate restructuring options, including a potential standalone restructuring or sale strategy. The company emphasizes that it will continue providing uninterrupted pharmacy services to long-term care facilities and maintain regular business operations, including employee wages and vendor payments.
Omnicare, una controllata di CVS Health (NYSE: CVS), ha avviato procedure volontarie diChapter 11 in risposta a contenziosi e pressioni finanziarie del settore. L'azienda ha ottenuto 110 milioni di dollari in finanziamento DIP per mantenere l'operatività durante il processo di ristrutturazione.
La dichiarazione di fallimento segue una sentenza del tribunale della U.S. District Court per il Southern District of New York relativa a presunte violazioni tecniche della legge farmaceutica. Omnicare intende utilizzare questo processo per valutare opzioni di ristrutturazione, inclusa una potenziale ristrutturazione autonoma o una strategia di vendita. L'azienda sottolinea che continuerà a fornire servizi farmaceutici senza interruzioni alle strutture di assistenza a lungo termine e a mantenere le normali operazioni aziendali, inclusi salari dei dipendenti e pagamenti ai fornitori.
Omnicare, una filial de CVS Health (NYSE: CVS), ha iniciado un proceso voluntario de quiebra bajo el Capítulo 11 en respuesta a desafíos legales y presiones financieras de la industria. La empresa ha asegurado 110 millones de dólares en financiamiento DIP para mantener las operaciones durante el proceso de reestructuración.
La presentación de la bancarrota sigue a una sentencia del Tribunal de Distrito de los Estados Unidos para el Distrito Sur de Nueva York respecto a presuntas violaciones técnicas de la ley farmacéutica. Omnicare planea usar este proceso para evaluar opciones de reestructuración, incluida una posible reestructuración independiente o una estrategia de venta. La compañía enfatiza que continuará proporcionando servicios farmacéuticos ininterrumpidos a instalaciones de cuidado a largo plazo y mantendrá las operaciones comerciales habituales, incluyendo salarios de los empleados y pagos a proveedores.
Omnicare, CVS Health(NYSE: CVS)의 자회사로서, 소송 문제와 업계 전반의 재정 압박에 대응하여 자발적 Chapter 11 파산 절차를 시작했습니다. 회사는 구조조정 과정 동안 운영을 유지하기 위해 1억 1천만 달러의 DIP(채무자 보유 자금) 대출를 확보했습니다.
이 파산 신청은 미국 뉴욕 남부 연방법원에서의 약사회법 기술 위반으로 인한 판결에 따른 것입니다. Omnicare는 이 절차를 활용해 독자적 구조조정 혹은 매각 전략을 포함한 구조조정 옵션을 평가할 계획입니다. 회사는 장기 요양 시설에 대한 약국 서비스의 무중단 제공 및 직원 급여, 공급업체 payments를 포함한 정상 영업 활동을 계속 유지할 것임을 강조합니다.
Omnicare, une filiale de CVS Health (NYSE: CVS), a engagé des procédures volontaires de faillite en vertu du chapitre 11 en réponse à des litiges et à des pressions financières sectorielles. L'entreprise a obtenu 110 millions de dollars de financement DIP pour maintenir ses opérations pendant le processus de restructuration.
Le dépôt de bilan fait suite à une décision du tribunal de district du sud de New York concernant des violations techniques présumées de la loi pharmaceutique. Omnicare prévoit d'utiliser ce processus pour évaluer les options de restructuration, y compris une restructuration autonome potentielle ou une stratégie de vente. L'entreprise souligne qu'elle continuera à fournir des services pharmaceutiques ininterrompus aux établissements de soins de longue durée et à maintenir les activités normales, y compris les salaires des employés et les paiements aux fournisseurs.
Omnicare, eine Tochtergesellschaft von CVS Health (NYSE: CVS), hat freiwillige Chapter-11-Initiativen als Reaktion auf Rechtsstreitigkeiten und branchenweite finanzielle Drucksituationen eingeleitet. Das Unternehmen hat 110 Millionen US-Dollar DIP-Finanzierung erhalten, um den Betrieb während des Restrukturierungsprozesses aufrechtzuerhalten.
Die Insolvenzanmeldung folgt einer Gerichtsentscheidung im U.S. District Court für den Southern District of New York über angebliche technische Verstöße gegen das Apothekenrecht. Omnicare plant, dieses Verfahren zu nutzen, um Restrukturierungsoptionen zu prüfen, einschließlich einer potenziellen eigenständigen Restrukturierung oder einer Verkaufsstrategie. Das Unternehmen betont, dass es weiterhin ununterbrochen pharmazeutische Dienstleistungen an Langzeitpflegeeinrichtungen erbringen und den normalen Geschäftsbetrieb fortführen wird, einschließlich Gehälter der Mitarbeiter und Zahlungen an Lieferanten.
أومنيكير، وهي شركة تابعة لـCVS Health (NYSE: CVS)، بدأت إجراءات voluntary بموجب الفصل الحادي عشر في استجابةً للتحديات القضائية والضغوط المالية على مستوى الصناعة. وقد حصلت الشركة على تمويل بمقدار 110 ملايين دولار بموجب DIP للحفاظ على العمليات أثناء عملية إعادة الهيكلة.
تأتي إجراءات الإفلاس هذه عقب حكم قضائي في محكمة المقاطعة الأمريكية للمنطقة الجنوبية من نيويورك بشأن مزاعم انخراط في انتهاكات تقنية لقانون الصيدلة. تخطط أومنيكير لاستخدام هذه العملية لتقييم خيارات إعادة الهيكلة، بما في ذلك إعادة هيكلة مستقلة محتملة أو استراتيجية بيع. وتؤكد الشركة أنها ستواصل تقديم خدمات صيدلانية دون انقطاع للمرافق التي تعنى بالرعاية طويلة الأجل، والحفاظ على العمليات التجارية الاعتيادية، بما في ذلك رواتب الموظفين والمدفوعات للموردين.
Omnicare，CVS Health（NYSE: CVS）的子公司，已启动自愿进入第11章破产程序，以应对诉讼挑战与行业性财政压力。公司已获得1.1亿美元的债务人控制下融资（DIP）以在重组期间维持运营。
破产申请源自美國紐約南區地方法院就药房法的技术性违规做出的裁决。Omnicare计划利用此程序评估重组方案，包括潜在的独立重组或出售策略。公司强调将继续向长期护理机构提供不间断的药房服务，并维持日常运营，包括员工工资和对供应商的付款。
- Secured $110 million in DIP financing to maintain operations
- Continuing normal business operations and customer service during restructuring
- Maintaining employee wages and benefits without interruption
- Commitment to pay post-filing vendors and suppliers in full under normal terms
- Filing for Chapter 11 bankruptcy protection indicates significant financial distress
- Facing substantial litigation challenges from alleged pharmacy law violations
- Potential sale of the business indicates uncertainty about standalone viability
- Broader financial challenges affecting the long-term care pharmacy industry
Insights
Omnicare's Chapter 11 filing follows litigation penalties and industry challenges; CVS subsidiary plans to continue operations during restructuring.
Omnicare, CVS Health's long-term care pharmacy subsidiary, has initiated voluntary Chapter 11 bankruptcy proceedings in response to two significant challenges: a court ruling imposing what the company describes as an "extreme" and "unconstitutional" penalty, and broader financial difficulties facing the long-term care pharmacy sector.
The bankruptcy filing in the U.S. Bankruptcy Court for the Northern District of Texas appears strategically designed to achieve multiple objectives. First, it provides immediate protection from creditors while Omnicare evaluates its options, which explicitly include either a standalone restructuring or potential sale. Second, it addresses fallout from litigation in the Southern District of New York involving alleged technical violations of pharmacy laws.
To maintain operations during this process, Omnicare has secured
This filing represents a significant but controlled restructuring approach. By entering Chapter 11 voluntarily, Omnicare maintains greater control over the process than it would in an involuntary bankruptcy scenario. The explicit mention of a potential sale strategy suggests the parent company CVS may be considering divesting this business unit, potentially to focus on more profitable segments while addressing the subsidiary's legal and financial challenges through the court-supervised process.
CVS subsidiary Omnicare enters bankruptcy amid healthcare industry pressures and litigation penalties, maintaining patient services during restructuring.
Omnicare's Chapter 11 filing signals significant structural problems in the long-term care pharmacy sector. This specialized pharmacy segment faces unique challenges including thin margins, complex reimbursement systems, and high regulatory compliance costs that aren't fully captured in standard pharmacy business models.
The bankruptcy notably comes despite backing from healthcare giant CVS Health, suggesting the subsidiary's challenges were substantial enough that the parent company determined a court-supervised restructuring was preferable to continued investment. The press release explicitly references "other financial challenges facing the broader long-term care pharmacy industry," indicating systemic issues beyond just the litigation outcome.
For patients and healthcare facilities, Omnicare's assurances about continuity of care are backed by the
This restructuring represents a significant development in the healthcare services landscape. Long-term care pharmacies operate at the intersection of multiple healthcare systems, managing complex medication regimens for patients with multiple chronic conditions. As the population ages, these specialized pharmacy services become increasingly important, yet this filing suggests the current business model may not be sustainable without structural changes or regulatory adjustments to address the sector's unique challenges.
Company Intends to Use Process to Implement a Standalone Restructuring or Sale Strategy
Remains Focused on Delivering Safe and Reliable Pharmacy Services to All Customers
Omnicare remains fully focused on meeting the pharmacy needs of its customers and long-term care residents. During the court-supervised process, Omnicare is continuing to provide safe and reliable pharmacy services to long-term care facilities. Omnicare customers and patients can expect to continue to access pharmacy and clinical services without disruption.
David Azzolina, President of Omnicare said, "Omnicare has a proud history of providing industry-leading, pharmacy and clinical care solutions to long-term care providers and their residents. Omnicare has been engaged in a civil lawsuit alleging technical violations of pharmacy law based on practices the government knew about and approved. There were no allegations of harm to any Omnicare patients nor did the government allege that any patient got anything other than the medicine they needed when they needed it. The District Court nevertheless imposed an extreme and, we believe, unconstitutional penalty. Given that ruling and a number of other issues facing our business, we now are taking necessary steps to move forward and ensure the continued delivery of safe and reliable pharmacy service to our customers."
Mr. Azzolina continued, "Supporting our customers and residents is our top priority. As we move through this process, we remain fully committed to providing optimal care for the residents and customers we serve. We are grateful to our facility and senior living community partners for their continued support. I want to thank the entire Omnicare team for their unwavering dedication and passion they bring to delivering the high level of service and clinical expertise that sets Omnicare apart."
Additional Information About the Court-Supervised Process
Omnicare has commenced voluntary Chapter 11 proceedings in the
In connection with this process, Omnicare has entered into an agreement for
Omnicare is filing a number of customary motions seeking court authorization to continue to support its ongoing operations during the court-supervised process. Subject to approval of these motions, Omnicare expects to uphold its go-forward commitments to its stakeholders, including continued payment of employee wages and benefits without interruption. Omnicare fully expects to pay vendors and suppliers in full under normal terms for goods and services provided after the filing date.
Additional information regarding Omnicare's court-supervised process is available at www.OmnicareRestructuring.com.
Court filings and other information related to the proceedings, including instructions on how to file a proof of claim, are available on a separate website administered by Omnicare's claims agent, Stretto, at https://cases.stretto.com/Omnicare, by calling Stretto representatives toll-free at (833) 570-5323 or (949) 276-9547 for calls originating outside of the
Advisors
Jenner & Block LLP and Haynes Boone are serving as legal counsel, Houlihan Lokey is serving as investment banker and Alvarez & Marsal is serving as restructuring advisor to Omnicare.
About CVS Health
CVS Health is a leading health solutions company building a world of health around every consumer, wherever they are. As of June 30, 2025, CVS Health had approximately 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics, a leading pharmacy benefits manager with approximately 87 million plan members, and a dedicated senior pharmacy care business serving more than 800,000 patients per year. CVS Health also serves an estimated more than 37 million people through traditional, voluntary and consumer-directed health insurance products and related services, including highly rated Medicare Advantage offerings and a leading standalone Medicare Part D prescription drug plan. CVS Health's integrated model uses personalized, technology driven services to connect people to simply better health, increasing access to quality care, delivering better outcomes, and lowering overall costs.
About Omnicare
Omnicare is a national leading provider of pharmacy services to the long-term care market, which includes skilled nursing facilities and independent and assisted living communities, addressing the needs of an aging population across the continuum of senior care.
For more information, visit www.omnicare.com.
Media Contacts
CVS Health
Ethan Slavin
860-273-6095
Ethan.Slavin@CVSHealth.com
Omnicare
Meaghan Repko
212-355-4449
mrepko@joelefrank.com
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SOURCE CVS Health
FAQ
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