Company overview

Hospitals and pharmacies use Omnicell’s equipment and software to store, prepare and dispense medicines. Its XT Series automated dispensing cabinets serve an installed customer base, while pharmacy robotics automate dispensing and sterile IV preparation. Product sales bring in most revenue; maintenance, software support and technology-enabled services provide another substantial stream. Some subscriptions include specialists who operate the equipment for customers.

The business also serves outpatient pharmacies. EnlivenHealth provides retail and community pharmacies with tools for patient communications, clinical workflows and payments. Specialty Pharmacy Services helps healthcare providers establish and run their own specialty pharmacies under risk-sharing contracts. That service depends on access to limited-distribution drugs and payer networks.

Omnicell earns the vast majority of its revenue in the United States. Most sales collectively come from members of its largest group purchasing organizations and federal agencies buying under a government supply contract. Purchasing groups such as Vizient and Premier negotiate terms, but individual healthcare providers contract with and pay Omnicell. Demand depends on providers’ equipment budgets, while delivery timing depends on their ability to staff and complete installations. Continued service income also depends on subscription renewals.

Patient-data handling is subject to privacy and health-information rules. Most current medication-management solutions are not directly regulated by the FDA or DEA, but Omnicell’s medical devices must meet applicable FDA requirements.