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Acquisition of 340B Link BusinessExpands Omnicell’s AutonomousPharmacy PortfolioAugust 12, 2020
Safe Harbor StatementThis presentation contains forward-looking statements that involve risks and uncertainties, including statements regarding the timing of the consummation of theacquisition, the expected benefits of the acquisition of the 340B Link business, including on Omnicell’s non-GAAP earnings per share, the impact of the acquisition onOmnicell’s products and services and the capabilities of the products and services of the 340B Link business. There are a significant number of factors that could causeactual results to differ materially from statements made in this presentation, including: difficulties encountered in closing and integrating the acquired business, includingregulatory review, technologies, personnel and operations; costs related to the acquisition; market acceptance of the acquisition and resulting products and services;Omnicell’s inability to realize value from its significant investments in its business, including product and service innovations; and general market, political, economic andbusiness conditions, including the ongoing COVID-19 pandemic, and other industry or economic conditions outside of Omnicell’s control.Additional information on potential factors that could affect Omnicell’s financial results is included in the company’s Quarterly Report on Form 10-Q for the quarter endedJune 30, 2020, which is on file with the U.S. Securities and Exchange Commission and Omnicell’s other filings with the SEC. Omnicell does not assume any obligation toupdate the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made. 2020 Omnicell, Inc. Content is confidential and proprietary.2
Compelling Strategic BenefitsCritical Inventory ManagementSolution for Covered EntitiesParticipating in the 340B Program Instrumental to compliance and financialhealth for many health systems Supports central pharmacy inventorymanagement and decision makingExtension of AutonomousPharmacy Vision Manages complex processes andcompliance for 340B administeredmedication across the continuumof careHigh Growth SoftwareEnabled Recurring ServiceRevenue Business The acquisition is expected to beimmediately accretive to Omnicellnon-GAAP EPS 2020 Omnicell, Inc. Content is confidential and proprietary. AttractiveGrowing Marketand Cross-SellingOpportunities3
340B Link Business at a GlanceCompany ProfileBased in Plano, TX. Provides software-enabledservices to help Covered Entities manage their340B program while maintaining complianceand maximizing efficiencyStrong client focus, driving 1.4Baggregate 340B savings and 95% retention rate annuallySoftware-Enabled ServicesSplit BillingDrives productivity through aweb-based ordering andinventory management tool, builton a market-leading qualificationengine that optimizes 340Bprogram value for mixed use andoutpatient pharmacyenvironments. 2020 Omnicell, Inc. Content is confidential and proprietary.Contract PharmacyAdministrationOptimizes the contract pharmacynetwork, providing access to any340B contract or mail orderpharmacy – including all majornational chains, regional chains, andindependent pharmacies across theU.S. – while simplifying programmanagement to drive effective andcompliant program value.Specialty ContractPharmacyStreamlines the specialtycontract pharmacy network toextend covered entity 340Bdiscounts and provide additionalaccess to more than 90% ofspecialty drugs.Drug DiscountAccess SolutionsProvides covered entities theability to share 340B discountswith eligible patients through adiscount card.4
Growing MarketSegmentCovered Entity (CE) SitesPurchases at discounted 340B prices increasedfrom 9B in 2014 to almost 30B in 2019,representing more than a 27% CAGR34.529.720.2The 340B program has rapidlyexpanded since 1992, and interestin the program continues to growas covered entities seek solutionsto help manage rising costs anduncompensated care.Drug Purchases Under 340B Program(sites in 0152016Hospitals & Site-owned CEs 31.1 33.7 22.0 26.716.8 17.9 13.515.2 46.3( in billions)38.42017 14.4 10.5 5.9 4.521.6 9.0 12.020142015Federal Grantees 61.0 16.2 19.320162017Purchases at Discounted 340B Prices 29.9 24.320182019340B DiscountSource: Drug ChannelsSource: U.S. Government Accountability Office (GAO)340B Covered Entities by State340B Contract Pharmacy 002,500 Source: HRSA, Drug Channels, U.S. Government Accountability Office (GAO), IndustryResearch 2020 Omnicell, Inc. Content is confidential and 16201720182019Source: Drug Channels5
Directly Strengthens Key Autonomous Pharmacy PillarsSafety340B Link business extendsaccess to patients withformulary control 2020 Omnicell, Inc. Content is confidential and proprietary.FinancialMaximizes client savingsfrom all participatingpharmacies – estimatedat over 1.4B per annumEfficiencyCompliancePeopleAutomates inventorymanagement and contractpharmacy networkLeading qualificationengine designed toensure compliance with340B criteriaSupports managementof critical coveredentities with neededtechnology6
340B Link Complements Omnicell’s Existing Solutions (Post-Close)Technical ServicesServiceProfessional ServicesAdvisory portAutomation340B LinkOmnicell One340B AnalysisInventory Analytics340B Split BillingXR2IV RobotCentral PharmacyContract PharmacyManagementIVXDiversion ManagementComplianceInventoryManagementOperational ReportingXTPoint of CareAnesthesiaWorkstationPopulation HealthVBM 200FSafety Financials Efficiency Compliance PeopleMultimed PackMed AdherenceOmnicell Data PlatformPlatformDISCLAIMER : Represents potential future technology that are under development and may or may not ever become generally available to the commercial marketplace. Omnicell makes no commitment with regard to such potential future technology. 2020 Omnicell, Inc. Content is confidential and proprietary.7
Transaction OverviewTransactionConsideration 225 million in cash, subject to customary adjustmentsSources ofFinancingCash on hand plus proceeds from Omnicell’s existing revolving credit facilityEarnings Impactand ReturnsHigh growth tech enabled services recurring revenue business with attractive return profileExpected to be immediately accretive to Non-GAAP EPS in 2020ExpectedClosingTimetableTransaction expected to close in 2020, subject to regulatory approvals andcustomary closing conditions 2020 Omnicell, Inc. Content is confidential and proprietary.8
ability to share 340B discounts with eligible patients through a discount card. Streamlines the specialty contract pharmacy network to extend covered entity 340B discounts and provide additional access to more than 90% of specialty drugs. Split Billing. Contract Pharmacy Administration. Specialty Contract Pharmacy. Drug Discount. Access Solutions
