Option Care Health (OPCH) 8-K Entry into a Material Definitive Agreement

Exhibit 99.1

News Release

BIOSCRIP ANNOUNCES SECOND QUARTER 2006 FINANCIAL RESULTS
Cost Reduction Program Moving Forward
Concentrating on New Product and Infusion Expansion, CAP

Elmsford, NY — August 8, 2006 —BioScrip, Inc. (NASDAQ: BIOS) today reported second quarter 2006 revenue of $279.6 million and a net loss of $5.7 million, or $0.15 per share. Second quarter 2006 operating results include $1.4 million of severance related to the departure of former senior management members, $1.5 million of ongoing sales, general and administrative (“SG&A”) expenses related to acquisitions made by the Company since June 30, 2005, $3.1 million of additional bad debt expense and $0.5 million of charges related to the adoption of FAS 123(R), entitledShare-Based Payment.

For the six-month period ended June 30, 2006, revenue increased 22% to $579.3 million from $475.0 million reported in the same period of last year. Net loss for the six-month period ended June 30, 2006 was $6.9 million, or $0.18 per share compared to net loss of $1.9 million, or $0.06 per share in the same period a year ago. Operating results for the six-months ended June 30, 2006 and the three-month period ended June 30, 2005 includes the Company’s acquisition of Chronimed Inc. in March 2005. Operating results for the six months ended June 30, 2006 include $1.8 million of severance expense, $2.2 million of ongoing SG&A expenses of the combined Company’s acquisitions since June 30, 2005, $4.6 million of additional bad debt expense and $1.1 million of expenses related to the adoption of FAS 123(R).

Chairman and CEO, Richard H. Friedman stated, “The quickest way to restore profitability is through cost reductions and improving our collection efforts. We have identified annualized savings opportunities in excess of $7.5 million, which we will begin to realize by September 1. We have reorganized our collections process and implemented new procedures that will aid us in collections. We have already seen improvement in June and July and we expect this trend to continue, ultimately leading to an improved bad debt expense as a percentage of revenue.”

“The recently implemented government Competitive Acquisition Program (CAP) provides us with new opportunities,” continued Mr. Friedman. “We achieved a substantial increase in the second and most recent physician enrollment period. It is still early, but the trend is encouraging and we anticipate the program to contribute profitably in the fourth quarter.”

Second Quarter Reported Results

Second quarter 2006 revenue declined 2% to $279.6 million, compared to $286.6 million for the same period a year ago. Revenue decreases were primarily the result of the loss of PBM Services business, offset by increases in the Company’s other business units, which included approximately $7.0 million of revenues associated with acquisitions since June 30, 2005. Second quarter 2006 Specialty Services revenue was $210.5 million, an increase of $17.4 million, or 9%, due primarily to sales of new biotech drugs, strong growth in infusion sales, the acquisition of Northland

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Pharmacy in October 2005 and the acquisition of Intravenous Therapy Services (“ITS”) in March 2006. Second quarter 2006 PBM Services revenue was $69.1 million, a decrease of $24.4 million, or 26%, from the prior year’s second quarter, primarily due to the loss of PBM Services contracts with Centene Corporation, which was partially offset by increased traditional mail volume.

Gross profit for the second quarter 2006 was $28.8 million, a decrease of $1.7 million from the same period of 2005. Gross profit was 10.3% of revenue in the second quarter 2006 compared to 10.6% in the comparable period of last year. Gross margin declines were the result of program changes associated with the implementation of Medicare Part D on January 1, 2006 and industry-wide reimbursement pressures.

Second quarter 2006 selling, general and administrative expenses (“SG&A”) increased to $31.1 million, or 11.1% of total revenue, from $26.3 million, or 9.2% of total revenue over the second quarter 2005. The increase in SG&A was due primarily to the Company’s incurrence of $1.4 million in severance expense related to the departure of former senior management members, $1.5 million of ongoing operating expenses associated with acquisitions made by the Company since June 30, 2005, $0.5 million of stock option expense due to the adoption of FAS 123(R) on January 1, 2006, and $0.4 million of finance and IT expenses to improve receivable collections and system infrastructure.

Bad debt expense in the second quarter was $4.4 million, or 1.6%, of revenue, compared to $1.3 million, or 0.4%, of revenue for the same period a year ago, reflecting the increased bad debt reserve rate.

Net loss was $5.7 million, or $0.15 per share, for the second quarter 2006 compared with a net loss of $3.5 million, or $0.10 per share for the second quarter 2005.

“The Specialty Services business is delivering,” added Mr. Friedman. “Our IVIG and other products related to our infusion business are performing well. BioScrip’s name recognition, coupled with our proven success with new specialty drugs has led to new and expanded relationships with a growing number of pharmaceutical manufacturers.”

Mr. Friedman concluded, “The fundamentals of our business and industry remain strong and we expect to achieve significant improvement in our financial results by the fourth quarter.”

Conference Call Information

BioScrip will host a conference call to discuss second quarter 2006 financial results on Tuesday, August 8, 2006 10:00 a.m. EDT. Interested parties may participate in the conference call by dialing 888-391-0082 (US), or 212-676-5387 (International), 5-10 minutes prior to the start of the call. A replay of the conference call will be available from 12:00 PM EDT on August 8, 2006 through 12:00 PM ET on August 15, 2006, by dialing 800-633-8284 (US), or 402-977-9140 (International), and entering reservation 21300376. A webcast and archive of the conference call will also be available under the Investor Relations section of the BioScrip website, www.bioscrip.com.

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About BioScrip, Inc.

BioScrip provides comprehensive pharmaceutical care solutions. We partner with healthcare payors, pharmaceutical manufacturers, government agencies, physicians, and patients to deliver cost effective programs that enhance the quality of patient life. We focus our products and services in two core areas: Specialty Medication Distribution and Clinical Management Services, both nationally and community-based, and Pharmacy Benefit Management Services. Our specialty medication distribution capabilities include condition-specific clinical management programs tailored to improve the care of individuals with complex health conditions such as HIV/AIDS, Cancer, Infusion IVIG, Hepatitis C, Rheumatoid Arthritis, Multiple Sclerosis, and Transplantation. Our complete pharmacy benefit management programs include customized benefit plan design, pharmacy network management and sophisticated reporting capabilities that deliver improved clinical and economic outcomes. In addition, we have 36 locations including community and infusion pharmacies in major metropolitan markets across the U.S., providing nationwide access and clinical management capabilities in a high-touch community-based environment.

Forward Looking Statements

This press release may contain statements which constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the intent, belief or current expectations of the Company, its directors, or its officers with respect to the future operating performance of the Company and our success with respect to the integration and consolidation. Investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward looking statements as a result of various factors. Important factors that could cause such differences are described in the Company’s periodic filings with the Securities and Exchange Commission.

Contact

Barry A. Posner	Rachel Levine
Executive Vice President	Investor Relations
BioScrip, Inc.	The Global Consulting Group
Tel: 914-460-1638 (NY direct line)	Tel: 646-284-9439
Tel: 952-979-3750 (MN direct line)	Email: rlevine@hfgcg.com
Email:bposner@bioscrip.com

FINANCIAL TABLES FOLLOW

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BIOSCRIP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)

	June 30, 2006			December 31, 2005
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	4,075		$	1,521
Receivables, less allowance for doubtful accounts of $13,415 and $14,406 at June 30, 2006 and December 31, 2005, respectively		121,129			118,762
Inventory		29,660			25,873
Prepaid expenses and other current assets		3,810			2,054
Deferred taxes		13,307			11,225
Total current assets		171,981			159,435
Property and equipment, net		11,163			9,232
Other assets and investments		908			939
Goodwill		114,814			104,268
Intangible assets, net		11,952			14,713
Total assets	$	310,818		$	288,587
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Line of credit	$	38,170		$	7,427
Accounts payable		54,771			39,969
Claims payable		10,366			31,402
Payables to plan sponsors		1,447			1,695
Accrued expenses and other current liabilities		13,659			11,454
Total current liabilities		118,413			91,947
Deferred taxes, net		1,501			875
Total liabilities		119,914			92,822
Stockholders’ equity
Common stock, $.0001 par value; 75,000,000 shares authorized, 37,263,931 shares issued and outstanding at June 30, 2006; 37,094,252 shares issued and outstanding at December 31, 2005		4			4
Treasury stock, 2,198,076 shares at cost		(8,002	)		(8,002	)
Additional paid-in capital		236,963			234,958
Accumulated deficit		(38,061	)		(31,195	)
Total stockholders’ equity		190,904			195,765
Total liabilities and stockholders’ equity	$	310,818		$	288,587

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BIOSCRIP, INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Revenue	$	279,585		$	286,617		$	579,303		$	475,015
Cost of revenue		250,791			256,104			520,178			424,055
Gross profit		28,794			30,513			59,125			50,960
% of Revenue		10.3	%		10.6	%		10.2	%		10.7	%
Selling, general and administrative expenses		31,100			26,302			59,003			41,854
Bad debt expense		4,355			1,285			6,654			2,018
Amortization of intangibles		1,639			1,956			3,261			2,847
Goodwill and intangible impairment		—			5,886			—			5,886
Merger related expenses		—			747			114			1,134
Total operating expenses		37,094			36,176			69,032			53,739
% of Revenue		13.3	%		12.6	%		11.9	%		11.3	%
Loss from operations		(8,300	)		(5,663	)		(9,907	)		(2,779	)
Interest income (expense), net		(731	)		12			(1,182	)		(141	)
Loss before benefit from income taxes		(9,031	)		(5,651	)		(11,089	)		(2,920	)
Tax benefit		(3,321	)		(2,111	)		(4,223	)		(1,047	)
Net loss	$	(5,710	)	$	(3,540	)	$	(6,866	)	$	(1,873	)
Basic loss per share	$	(0.15	)	$	(0.10	)	$	(0.18	)	$	(0.06	)
Diluted loss per share	$	(0.15	)	$	(0.10	)	$	(0.18	)	$	(0.06	)
Basic weighted-average shares		37,222			36,829			37,212			31,238
Diluted weighted-average shares		37,222			36,829			37,212			31,238

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