Option Care Health, Inc. (OPCH): A Bull Case Theory
We came across a bullish thesis on Option Care Health, Inc. on Brian’s Substack by Brian Flasker. In this article, we will summarize the bulls’ thesis on OPCH. Option Care Health, Inc.'s share was trading at $29.35 as of July 31st. OPCH’s trailing and forward P/E were 23.29 and 19.65, respectively according to Yahoo Finance.
A home infusion nurse in full PPE gown delivering treatments to a patient in their own home.
Option Care Health (OPCH) has evolved into the dominant independent provider of home and alternate site infusion services in the U.S., originating from Madison Dearborn Partners' 2015 acquisition of Walgreens Infusion Services. The 2019 reverse merger with BioScrip and full divestiture by Walgreens and MDP by 2023 paved the way for OPCH to operate with full independence. Led by CEO John Rademacher and CFO Michael Shapiro, both with substantial equity stakes, OPCH has built a national infrastructure of 91 pharmacies and 99 infusion suites, covering 96% of the U.S. population.
The company’s integrated model provides cost-effective, high-quality infusion therapies in outpatient and home settings, capitalizing on a healthcare trend shifting treatments away from costly hospitals. This platform serves over 1,400 contracts with 800+ partners, including all top 10 national insurers. Acute therapies, though operationally complex, act as a competitive wedge, while chronic therapies anchor long-term recurring revenues. OPCH’s mix—75% chronic, 25% acute—combined with a focus on generics and biosimilars, ensures resilience against pricing volatility.
With its Advanced Practitioner (AP) model, OPCH is pushing clinical boundaries, managing more complex therapies in lower-cost settings and enhancing utilization of its already-built infrastructure. Only ~50% of its infusion suite capacity is currently utilized, leaving ample runway for capital-light growth. Despite industry concerns like drug pricing reforms and labor shortages, OPCH’s embedded relationships, clinical capabilities, and scalable model offer strong visibility into cash flow and earnings. Trading at ~15.4x 2025 owner earnings with a 17.4% expected IRR, OPCH represents a high-quality compounder with an entrenched moat and significant upside.
Previously, we covered a bullish thesis on Chemed Corporation by 310 Value in April 2025, which highlighted the durability of its earnings, temporary volatility in its subsidiaries, and disciplined share repurchases. The company’s stock price has depreciated by approximately 29% since our coverage. This is because temporary segment headwinds persisted longer than expected. The thesis still stands as Chemed's core fundamentals remain intact. Brian Flasker shares a similar view but emphasizes OPCH’s capital-light model and payer-aligned infrastructure.
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