Infusing a Fragmented Market
One way for a business to expand is buying up smaller competitors to create a regional or national play in a fragmented industry. The plan can help build a brand that provides for better recognition over smaller competitors, but it can also be ripe with problems of consolidating numerous businesses with different cultures.
In the home care and infusion sector, BioScrip (NASDAQ: BIOS ) has begun the process of acquiring companies that provide alternate-site and home infusion therapy for patients with complex, acute and chronic illnesses. With an aging population, the expectations for all types of therapies provided outside expensive medical centers are expected to continue growing.
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