With the addition of TheraDoc, Premier will hold about 20% of the clinical surveillance market, wrote Wells Fargo Securities analyst Jamie Stockton in a research note. About half of all hospitals have no similar solution in place.
Premier's competitors in the clinical reporting/alert space are Wolters Kluwer, CareFusion Corp., and large electronic-health record vendors such as Cerner Corp. and Epic Systems Corp.
“The addition of TheraDoc propels Premier to the top position in the clinical surveillance market, significantly strengthening our ability to help health systems monitor and protect patients from infections, harmful drug interactions and other adverse events, crucial capabilities in today's world of performance-based reimbursement,” Premier CEO Susan DeVore said in a statement.
Premier expects TheraDoc will improve earnings in fiscal 2015. Michael Cherny, managing director at ISI Group, said his group expects the acquisition will boost Premier's bottom line by 3% to 5% on an annualized basis, once completed. He also viewed the deal as “a nice cushion/addition to the company's pending FY15 guidance.”
Charlotte, N.C.-based Premier has not yet set a date to release financial results from its fourth quarter and fiscal 2014, which ended June 30. In its third quarter, Premier recorded 16% revenue growth and large profits.
The all-cash transaction, expected to close by Sept. 30, is Premier's second in the past four months. In April, the company acquired MEMdata, an analytics platform that helps providers reduce costs on supplies, equipment and construction.
Lake Forest, Ill.-based Hospira bought TheraDoc for $63.3 million in 2009, but it is somewhat dissimilar to Hospira's core businesses of medical devices and pharmaceuticals.
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