Infusion Therapy: Industry Primer
OCTOBER 2024
OCTOBER 2024
The infusion therapy market continues to grow rapidly, supported by numerous tailwinds that are creating a compelling opportunity for investors.
Ambulatory infusion and home infusion centers are the leading strategy as shifting consumer preferences, heightened physician awareness and health plans steer volume to align networks with high-quality, low-cost sites of care.
Payors are increasingly utilizing site of care programs to steer volume to lower cost AICs and home infusion sites as they seek avenues to bend the high-cost specialty drug curve - 56% of payors are considering expanding site of care programs.
Sources: Publicly Available Information
Strong Pipeline: the infusion market is expected to continue expanding rapidly as waves of new specialty drugs are approved, there is typically a multi-year lag from approval to widespread downstream adoption
Site Considerations: as patented drugs lose exclusivity, alternative sites are expected to be more economically viable and be more feasible outside of HOPD; AIC providers are hedging any therapy migration through diversifying into home settings
Pharmacy Distribution: across the pipeline fewer special requirements (transport, storage, admin), expansion of self-administered and subcutaneous formulations may shift new patient therapy starts from the medical to pharmacy insurance benefit
Biosimilar Adoption: the next five years are expected to see an uptake of biosimilars as new molecules enter market and payors slowly adopt approved biosimilars, this is expected to pressure ASP and margins of infusion providers depending on GPO/supplier contracting efforts
Sources: Publicly Available Information
Payors remain laser-focused on bending the specialty pharmacy cost curve through stringent management measures — utilizing strategies that shift drug administration to the pharmacy insurance benefit (clear/white bagging) and expanding use of prior authorizations / step therapy.
Sources: Publicly Available Information
Despite healthcare services headwinds there has been consistent and elevated investor interest in the infusion therapy sector.
The recent surge in deals across alternative site infusion providers highlights a robust market backed by compelling unit economics, various strategic growth levers, and numerous pathways for investment realization underpinned by support from key healthcare stakeholders.
Date | Seller | Buyer | Type | Model | |
---|---|---|---|---|---|
August 2024 | Vital Care | Berkshire, LGP, Linden | Platform | AIC / Franchise | |
July 2024 | Infusicare | Dynamic Infusion | Add-on | Home | |
July 2024 | Infusion Associates Management | Vivo Infusion | Add-on | AIC | |
July 2024 | Big Sky IV Care | Access Infusion Care | Add-on | Home | |
June 2024 | Apex Infusion Pharmacy | FFL Partners | Platform | AIC / Home | |
May 2024 | Coastal Infusion Services | PromptCare | Add-on | Home | |
April 2024 | SI Therapeutics | IVX Health | Add-on | AIC | |
January 2024 | Paragon Healthcare | Elevance Health | Add-on | Diversified | |
January 2024 | Access Infusion Care | New Harbor Capital | Platform | AIC / Home |
Favorable unit economics characterized by low incremental initial capital, accelerated ramp-up periods and once established, secure, hard to dislodge referral relationships
Multiple levers to drive inorganic success – rate arbitrage, supplier / GPO negotiations, local staffing density, referral program professionalization, centralized corporate functions
Diverse pathways for investment realization with strong underlying support from key healthcare stakeholders (e.g. payors, pharma, health systems)
Strong secular tailwinds with ample untapped white space and market opportunities
Sources: Publicly Available Information
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