A federal bankruptcy judge has approved the $250 million sale of Omnicare, a long-term care pharmacy subsidiary of CVS Health Corp., to GenieRx Holdings, ending a court-supervised process that had drawn interest from private equity and healthcare investors.
GenieRx, the buyer, is a partnership between Milrose Capital and Integro Management, which operates as Integro Healthcare Services. It had served as the stalking-horse bidder during the bankruptcy auction overseen by the US Bankruptcy Court for the Northern District of Texas.
The transaction is expected to close later this year, subject to regulatory clearance and standard closing conditions, according to a statement from Omnicare.
"Today's approval marks an important milestone," David Azzolina, president of Omnicare, said in the statement.
He said the company was entering its next phase with a focus on "delivering reliable pharmacy services, maintaining safe and clinically appropriate care, and being transparent and fair in how we operate."
Omnicare supplies pharmacy services to nursing facilities, as well as independent and assisted living communities, making it one of the larger players serving the US long-term care market.
Under GenieRx, the company said it would strengthen operations by adhering to clinical best practices and working more closely with the providers and communities it serves. It added that it would continue offering transparent pricing, clinically aligned programs and data-driven insights in the run-up to closing.
Service continuity for existing customers would be maintained during the interim period, Omnicare said, citing a "compliance-first" approach, support for higher-acuity residents and continued refinements to billing, delivery and communications.
The Omnicare bankruptcy sale comes as CVS continues to streamline a sprawling healthcare portfolio assembled through years of acquisitions.
The company recently cut 313 positions from its Aetna unit, which it acquired in 2018 for $69 billion, as part of a broader retrenchment across the US health insurance sector.
Horizon Blue Cross Blue Shield has similarly eliminated 242 roles in pursuit of $275 million in cost reductions over three years, underscoring the pressure on insurers to rein in expenses.
Despite the divestments and job cuts, CVS's headline numbers have moved in the opposite direction. Parent company CVS Health reported first-quarter attributable net income of $2.94 billion, up from $1.78 billion a year earlier.
The increase was driven by the performance of its government business and by healthcare cost payable estimates from 2025 that came in below projections, the company said.
Total revenue rose 6.2 per cent to $100.43 billion from $94.59 billion, with gains recorded across all operating segments.
