Allion Healthcare
| Company type | Public (formerly) |
|---|---|
| Industry | Healthcare, Pharmacy Benefit Management |
| Predecessor | The Care Group |
| Founded | 1983 |
| Fate | Acquired by HIG Capital in 2009; MOMS Pharmacy segment purchased by AIDS Healthcare Foundation in 2012 |
| Headquarters | Melville, New York , United States |
Area served | United States (New York, California, Florida, New Jersey, Washington) |
| Products | Mail-order HIV medications, MOMSPak multi-drug treatment regimens |
| Website | allionhealthcare |
Allion Healthcare Inc. served as the parent organization of MOMS pharmacy, headquartered in Melville, New York. The company specialized in providing mail-order HIV medications, primarily catering to patients enrolled in Medicaid or the AIDS Drug Assistance Program (ADAP).
Its flagship offering, the MOMSPak, delivers multi-drug treatment regimens in individually dated doses designed to enhance patient compliance.
Allion managed distribution facilities located in New York, California, Florida, New Jersey, and Washington.
History
Originally established in 1983 under the name The Care Group, the company underwent a rebranding to Allion following a bankruptcy restructuring in 1999.
Among its strategic initiatives were a pricing discount arrangement with Roche Laboratories that involved sharing anonymized patient data related to Fuzeon therapy, and an exclusive distribution agreement signed in 2007 with Galea Life Sciences for Nutraplete, a nutritional supplement aimed at individuals living with HIV/AIDS.
Publicly traded on NASDAQ under the symbol ALLI, Allion was acquired by private equity firm HIG Capital in October 2009 for $278 million, equating to $6.60 per share.
In 2012, the MOMS Pharmacy segment was purchased by the AIDS Healthcare Foundation.
Acquisitions
Allion Healthcare broadened its operational footprint through significant acquisitions, notably Priority Pharmacy in January 2006 and Biomed America in December 2024 for $171 million, thereby strengthening its product range and distribution network.
2012 indictment
In April 2012, four individuals associated with Allion Healthcare faced charges from the New York Attorney General concerning allegations of money laundering and bribery connected to purported black market drug sales. The accusations included distributing medications of uncertain origin and potency, some reportedly mislabeled or expired; however, these allegations have not been definitively proven.
Between 2008 and 2012, Glenn Schabel, Allion’s supervising pharmacist, was said to have procured over $274 million worth of HIV drugs from wholesalers controlled by Stephen Manuel Costa. These wholesalers allegedly obscured diverted pharmaceuticals through various licensed entities. The Attorney General asserted that certain drugs were stolen or involved repackaging previously dispensed pills for resale. Ira Gross reportedly facilitated these transactions as an intermediary, while Harry Abolafia produced counterfeit invoices to validate them. Despite thorough investigation, no conclusive proof has emerged.
The indictment referenced at least $155 million in fraudulent Medicaid claims linked to these operations. Throughout this period, Allion’s leadership maintained they had no knowledge of illicit drug sourcing while continuing Medicaid billing activities.
External links
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- American firms founded in 1983
- Health care organizations established in 1983
- Companies that underwent Chapter 11 bankruptcy in 1999
- HIV/AIDS issues in the United States
- Medicare and Medicaid programs (United States)
- Businesses located in Suffolk County, New York
- Pharmacy benefit management firms in the United States
- Health care corporations based in New York (state)
- 1983 foundations in New York (state)
- Formerly Nasdaq-listed companies
- Mergers and acquisitions in 2010
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