Specialty Infusion Therapies Grow in Demand

4 Min Read

 

Drivers Include Personalization, Innovation, and At-home Delivery Options 

Specialty infusion therapy, a form of IV therapy,is the intravenous or subcutaneous use of medication delivered through a needle or catheter. Treatment is administered under the supervision of a trained medical professional and can conveniently be received at home or in ambulatory infusion centers (AICs).¹

Specialty infusions may include more than one medication in each dose, making the treatments particularly advantageous for those with autoimmune diseases, cancer, and neurological disorders as well as digestive issues and other chronic conditions. Prone to compromised immunity and mobility issues, these patients can also benefit greatly from at-home and AIC treatment options.²

Over three million Americans today receive some form of infusion therapy, translating to $110 billion annually. Growing at a yearly rate of 5-7%, specialty infusion treatments provide an interesting opportunity for investors. With an annual spend near $25 billion, the non-hospital infusion market shows no signs of slowing down.³

Specialty Infusion Therapy Investor Insights

Factors Shaping the Specialty Infusion Market Share

Personalization, Innovations, and Alternate Site Care Options Drive Growth

• Personalization for Vulnerable Patients: With opportunities to administer highly specialized medical care for the most vulnerable patients, specialty infusion therapy is more cost-effective and efficient than traditional acute services delivered in-hospital. This is particularly evident in treating frail or immuno-compromised patients with chronic conditions.⁴ In fact, a 2023 National Home Infusion Foundation study showed a cumulative 5-year savings of nearly $3 billion healthcare dollars for Medicare patients who used home infusion therapy.⁵ This preference for personalized care will likely build as the American population ages and the number of chronic conditions continues to climb.
• Industry Innovations: Much of today’s drug development includes complex molecules that require IV delivery. As a result, investment interest is on the rise, and the industry is closely monitoring current research and development with:
  • Biosimilars: A medication that is very similar to an existing biological product (like a protein or antibody), but not identical. Biosimilars may have lower costs and can be more easily accessible than the original drugs.⁶
  • Gene Therapy: This treatment delivers altered genetic material through IV infusion to help patients’ cells produce the necessary proteins to treat or prevent diseases.⁷  
  • Stem Cell Therapy: Leveraging unique cells that can develop into different types of cells in the body, stem cell therapy can be administered intravenously to repair or replace damaged tissues caused by autoimmune diseases or certain cancers.⁸

These novel therapies are showing promise in the treatment of neurological diseases, like Alzheimer’s Disease, Parkinson’s Disease, and Multiple Sclerosis.⁹

• Alternate-site and Home-based Care: Over 70% of patients report that they prefer receiving specialty infusion care in AICs or at home, according to a recent Bourne Partners report. This may be due in part to convenience, but cost is a factor as well. Patients receiving in-home and alternate-site infusion therapy pay less than half the cost of the same infusion therapy delivered in a hospital setting.¹⁰ Providers are seeing cost savings, too. Driven by patient preferences and the cost advantages of using AICs and home-based infusion therapy, many providers are reporting double-digit organic revenue growth.¹¹

Industry Landscape and Challenges

• Competitive Landscape: 
  • The top three competitors in the specialty infusion market today include:¹²
    • Option Care Health, the largest provider of specialty infusions today, with roughly $4.7 billion of annual revenue, or roughly 20% of the market share.
    • OptumRx, the pharmacy services provider for UnitedHealth Group, holds approximately 15% of the market share. 
    • Coram Specialty Infusion, a subsidiary of CVS Health, retains roughly 15% of the market share. 

All other providers hold ~50% of the market share. This includes companies like Bright Spring, CarelonRX, Accredo Health and Soleo (as well as roughly 800 additional providers).

• Consolidation of Lower-level Competition: The specialty infusion marketplace is highly fragmented, and it’s anticipated that the ongoing consolidation of providers in the coming years could create opportunities for private equity investors. Particularly with smaller-scale business in this space, such as:¹³
  • BrightSpring Health (with less than 10% market share)
  • CarelonRx, part of Elevance Health (under 5%)
  • Accredo Health, owned by Cigna Healthcare (under 5%)
  • Soleo (under 5%)

• Risks and Restraints:
  • Labor Shortages and Efficiencies: Specialty infusion therapy requires administration by trained medical professionals, which makes the industry reliant on nurses to staff AICs and home-care networks. While hospitals have struggled with greater staffing challenges and labor limitations, especially during the COVID-19 pandemic, AICs face relatively fewer challenges.¹⁴
    

AICs are less affected by labor shortages because they’re able to use more efficient staffing models and technologies like telehealth and remote monitoring. This reduces the need for the on-site staff hospitals require, while still maintaining high-quality care.

As a result, investors are capitalizing on AICs due to their cost-effective, flexible staffing solutions. By reducing reliance on specialized staff and offering non-emergency treatments, AICs appeal to both patients and healthcare providers. This operational efficiency leads to strong financial performance, with AICs reporting 20-30% net gains within the first two years. Startup costs range from $150,000 to $350,000, making AICs a low-capital, high-return investment.¹⁵

Specialty Infusion Therapies Offer Unique Opportunities for Investors 

With the expanding need for personalized at-home medical care, America’s aging population, and the growing number of chronic condition diagnoses—specialty infusion therapies offer investors valuable opportunities. Get the expert insights you need to make smart investments when you partner with Apex Leaders.

Resources:
¹Infusion Therapy Market Update. Bourne Partners.
²Ibid.
³Ibid.
⁴Ibid.
⁵Cost Savings: Home Versus Inpatient Infusion Therapy, A Review of the Literature. National Home Infusion Association.
⁶Biosimilars Basics for Patients. FDA.
⁷How does gene therapy work? Medline Plus.
⁸Stem cell-based therapy for human diseases. Signal Transduction and Targeted Therapy.
⁹Infusion Therapy Market Update. Bourne Partners.
¹⁰Ibid.
¹¹Ibid.
¹²Ibid.
¹³Ibid.
¹⁴Ibid.
¹⁵Ibid.