After a decade operating under CVS Health’s umbrella, the nation’s largest nursing home pharmacy provider is poised to change hands.
A bankruptcy court in Texas on Wednesday approved the sale of CVS’s Omnicare, an underperforming long-term care pharmacy network, to GenieRx Holdings LLC in a deal valued at $250 million.
David Azzolina, Omnicare’s president, called the sale “an important milestone” for the company.
Omnicare filed for bankruptcy in September 2025 and formally headed for the auction block in April, marking the latest chapter in the company’s long decline. Last year, Omnicare was ordered to pay nearly $1 billion after it was found liable for fraudulently billing the government.
Omnicare dispenses tens of millions of prescriptions each year to patients in nursing homes and other facilities nationwide. CVS acquired the Cincinnati-based company for nearly $13 billion in 2015, attempting to broaden its presence in the specialty pharmacy business and capitalize on an aging US population. And while Omnicare was not directly tied to CVS’s pharmacy benefit management business, the acquisition was also expected to help strengthen CVS’s negotiating power with drugmakers.
But legal challenges soon overshadowed the deal. Omnicare faced a fraud investigation that resulted in a federal judge ordering the company to pay $948.8 million in penalties and damages as part of a whistleblower lawsuit accusing the company of fraudulently billing the government for invalid drug prescriptions. At the time, US District Judge Colleen McMahon of the Southern District of New York said the company filed more than 3.3 million false claims over an eight-year period, starting in 2010.
While it’s long been the largest nursing home pharmacy provider, Woonsocket, Rhode Island-based CVS has been pursuing a plan to sell Omnicare since 2022.
For CVS, unloading Omnicare marks the latest step to refocus on its more profitable lines of business. The company has scaled back opening senior health clinics in favor of smaller drugstore formats, for instance, and the company’s Aetna health insurance unit this year stopped selling individual coverage under the Affordable Care Act. It was the second time Aetna had given up on ACA coverage. CVS was expected to lose roughly $400 million in 2025 in its ACA plans, and set aside $448 million in the first quarter of the year to cover medical claims from its ACA members that wouldn’t be covered by insurance premiums.
GenieRx, which is poised to take over Omnicare as its new owner, is a joint partnership between private equity firm Milrose Capital LLC and health-care investment and management firm Integro Asset Management LLC, which does business as Integro Healthcare Services.
Rowan Farber, Integro’s CEO, called this new investment in Omnicare a testament to its strength.
“We admire the trust Omnicare has earned with its customers over decades of serving skilled nursing and assisted living partners, and we look forward to working collaboratively with their team to continue building on that strong foundation and legacy,” said Farber in a statement.
The transaction is expected to close later this year.
Alexa Gagosz can be reached at alexa.gagosz@globe.com. Follow her @alexagagosz and on Instagram @AlexaGagosz.