Option Care Health Inc. (OPCH), a company offering home and alternate site infusion services in the US, has seen a rise of 7.25% in the premarket trading session. As a result of that increase, OPCH stock currently stands at $25.90.
Replacement in S&P midcap
OPCH announced on Tuesday that Option Care Health Inc. would replace Trustmark Corp. (TRMK) in the S&P midcap 400, and TRMK would replace Sykes Enterprises Inc. (SYKE) in S&P SmallCap 600. Trustmark has a market capitalization that is more representative of small-cap market space. The changes would have to be effective prior to the opening of trading on 30th August.
Agreement to sell common stock
On 3rd August, OPCH announced that an affiliate of Madison Dearborn Partners has agreed to sell 18,000,000 of the company’s common stock at a price of $20.25 per share to the public in an underwritten public offering. Previously, 15,000,000 shares of common stock were announced to be sold. Madison Dearborn Partners also granted the underwriter a 30-day option to purchase up to 2,700,000 additional shares of common stock. The company said that it would not receive any profits from the offering. The offering was expected to close on the 5th of August. The company said that Goldman Sachs & Co. LLC is acting as the sole underwriter for the offering.
OPCH Q2 Financial Results
On the same day, i.e. 3rd August, OPCH reported the financial results for the second quarter of the fiscal year 2021, which ended 30th of June. According to the details, the company’s net revenue during the quarter stood at $860.3 million, an increase of 16.1% when compared with the equivalent period of 2020. The gross profit stood at $199 million, an increase of 19.6% when compared with the statistics of an equivalent period of 2020. The net income was $31.8 million, meaning the income per share stood at $0.18, while during the equivalent period of the previous year; the net loss was $7.7 million, or $0.04 loss per share. The cash flows from operations during the quarter stood at $73.7 million, as compared to cash flows of $35 million during the equivalent period of 2020. John C. Rademacher, Chief Executive Officer of Option Health Care Inc. said on the occasion that based on the momentum established in the first half, the Company is positioned very well heading into the second half of 2021.
Appointment of CMO in OPCH
On the 28th of July, OPCH announced the appointment of Dr. Seema Kumbhat as the company’s Chief Medical Officer (CMO). The company said that in the role, she had to oversee all the clinical strategies of the company, She was also expected to focus upon the optimization of the company’s operations to ensure the deliverance of the highest quality standards. Before joining OPCH, Dr. Seema was senior Vice President and Regional Medical Officer for Fresenius Kabi. Her appointment was greeted by the CEO of OPCH. He hoped that Dr. Seema would make a positive impact in continuing efforts to elevate patient care.
What’s next?
Analysts estimate that the revenue of OPCH is expected to grow to $3.68 billion during the next fiscal year. The EPS during next year is expected to increase 54.14%. All of these indicators are the epitome of OPCH stock in NASDAQ. So, potential investors should keep a close watch on OPCH stock.
