CVS Health secured court approval to sell its long-term care pharmacy business, Omnicare, according to a May 13 news release and bankruptcy court filings.
GenieRx, a partnership between a private investment firm and a healthcare investment and management firm, is buying the subsidiary. The transaction’s closing cash consideration is $250 million.
CVS acquired Omnicare in 2015 for almost $13 billion. In 2019, the federal government sued, alleging Omnicare fraudulently billed Medicare, Medicaid and Tricare for drugs lacking valid prescriptions. The company then had to pay a $15.3 million settlement due to the opioids and other controlled substances being dispensed.
In 2025, Omnicare was hit with an additional $949 million judgement, whereby a jury determined that Omnicare was liable for more than 3.3 million false claims related to prescriptions without physician authorization. A whistleblower initially filed the lawsuit in 2015.
In the wake of the lawsuit, Omnicare filed for Chapter 11 protection in the fall. CVS had floated strategic alternatives for Omnicare back in 2022, as well.
The transaction is slated to close later in 2026, pending regulatory approval.
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