NationsHealth Sells Respiratory Division to Lincare

SUNRISE, FLA.–NationsHealth announced last week it has sold its
respiratory division to Clearwater, Fla.-based Lincare Holdings for
$16 million in cash, and said it will transfer its respiratory
patients and related inventory to Lincare.

NationsHealth said it will use proceeds from the sale to support
the launch of a national prescription drug plan under Medicare Part
D that it is working on with Cigna. The company said the sale also
will enable “immediate” redirection of resources, including 100
employees from the respiratory division, to the Part D launch.

NationsHealth, which offers discount prescription cards accepted
at more than 50,000 pharmacies, currently has more than three
million cardholders. The company also provides home delivery of
diabetes and ostomy products to more than 114,000 patients, and
provides diabetes supplies for Medicare beneficiaries at more than
1,000 Kmart pharmacies.

The sale agreement calls for NationsHealth not to get involved
in sales and marketing of respiratory equipment and medication for
five years, and for Lincare to refrain from marketing or
advertising diabetes or ostomy services to certain customers for
three years, the Tampa Bay Business Journal reported.