<PAGE> 1
REGISTRATION NO. 333-__________
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
ON DECEMBER 20, 1996
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
CAPSTONE PHARMACY SERVICES, INC.
----------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 11-2310352
-------- ----------
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification Number)
2930 Washington Boulevard, Baltimore, Maryland 21230
----------------------------------------------------
(Address of Principal Executive Offices)
(Zip Code)
1996 COMPENSATION PLAN FOR KANTOR AND ROBBINS
---------------------------------------------
(Full Title of Plan)
R. Dirk Allison
Chief Executive Officer
Capstone Pharmacy Services, Inc.
2930 Washington Boulevard
Baltimore, Maryland 21230
-------------------------------------
(Name and Address of Agent for Service)
(800) 766-2761
----------------------------------------------------------
(Telephone Number, Including Area Code of Agent for Service)
CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Proposed Proposed Maximum Amount of
Title of Securities Amount to be Maximum Offering Aggregate Offering Registration
to be Registered Registered(1) Price Per Share(2) Price Fee
- ------------------ ------------- ------------------ ------------------ ------------
<S> <C> <C> <C> <C>
Common Stock, $.01 par value 100,000 $5 $500,000 $152
</TABLE>
- ---------------------------
(1) This Registration Statement also encompasses an indeterminable number of
additional shares that may become issuable pursuant to the antidilution
adjustment provisions of the plan.
(2) Pursuant to Rule 457, the offering price is estimated solely for the
purpose of calculating the registration fee on the basis of the price at which
the options issued under the plan may be exercised.
<PAGE> 2
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE.
The documents listed below are incorporated by reference in this
Registration Statement. In addition, all documents subsequently filed by
Capstone Pharmacy Services, Inc. (the "Company") pursuant to Sections 13(a),
13(c), 14 and 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act")
prior to the filing of a post-effective amendment that indicates that all
securities offered have been sold or that deregisters all securities then
remaining unsold, shall be deemed to be incorporated by reference in this
Registration Statement and to be a part hereof from the date of filing of such
documents. Any statement contained in a document incorporated or deemed to be
incorporated by reference herein shall be deemed to be modified or superseded
for purposes of this registration statement to the extent that a statement
contained herein or in any other subsequently filed document that also is or is
deemed to be incorporated by reference herein modifies or supersedes such
statement. Any such statement modified or superseded shall not be deemed,
except as so modified or superseded, to constitute a part of this Registration
Statement.
(a) The Company's Annual Report on Form 10-K for the ten months
ended December 31, 1995, as amended by Form 10-K/A2.
(b) The Company's Quarterly Report on Form 10-Q for the quarter
ended September 30, 1996.
(c) The Company's Quarterly Report on Form 10-Q for the quarter
ended June 30, 1996;
(d) The Company's Quarterly Report of Form 10-Q for the quarter
ended March 31, 1996;
(e) The Company's Current Report on Form 8-K dated October 2,
1996;
(f) The Company's Current Report on Form 8-K dated July 30, 1996,
as amended by Form 8-K/A;
(g) The Company's Current Report on Form 8-K/A2 dated May 22,
1995;
(h) The Company's Current Report on Form 8-K dated February 29,
1996, as amended by Forms 8-K/A and 8-K/A2;
(i) The Company's Current Report on Form 8-K dated July 18, 1996;
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<PAGE> 3
(j) The Company's Current Report on Form 8-K dated March 20, 1996;
(k) The Company's Current Report on Form 8-K dated December 31,
1995, as amended by Form 8-K/A;
(l) The description of the Common Stock under "Description of
Securities" contained in the Company's Registration Statement
on Form 8-A (File Number 000-20606) dated June 18, 1986, as
amended by Form 8-A/A dated July 18, 1996.
ITEM 4. DESCRIPTION OF SECURITIES.
The class of securities to be offered is registered under Section 12
of the Exchange Act.
ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL.
None.
ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 145 of the Delaware General Corporation Law ("DGCL") applies
to the Company and the relevant portion of the DGCL provides as follows:
145. INDEMNIFICATION OF OFFICERS, DIRECTORS, EMPLOYEES AND
AGENTS; INSURANCE.
(a) A corporation may indemnify any person who was
or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative
(other than an action by or in the right of the corporation)
by reason of the fact that he is or was a director, officer,
employee or agent of the corporation, or is or was serving at
the request of the corporation as a director, officer,
employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses
(including attorneys' fees), judgments, fines and amounts
paid in settlement actually and reasonably incurred by him in
connection with such action, suit or proceeding if he acted
in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the corporation, and,
with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a
presumption that the person did not act in good faith and in
a manner which he reasonably believed to be in or not opposed
to the best interests of the corporation,
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and, with respect to any criminal action or proceeding, had
reasonable cause to believe that his conduct was unlawful.
(b) A corporation may indemnify any person who was
or is a party or is threatened to be made a party to any
threatened, pending or completed action or suit by or in the
right of the corporation to procure a judgment in its favor
by reason of the fact that he is or was a director, officer,
employee or agent of the corporation, or is or was serving at
the request of the corporation as a director, officer,
employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against expenses
(including attorneys' fees) actually and reasonably incurred
by him in connection with the defense or settlement of such
action or suit if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best
interests of the corporation and except that no
indemnification shall be made in respect of any claim, issue
or matter as to which such person shall have been adjudged to
be liable to the corporation unless and only to the extent
that the Court of Chancery or the court in which such action
or suit was brought shall determine upon application that,
despite the adjudication of liability but in view of all the
circumstances of the case, such person is fairly and
reasonably entitled to indemnity for such expenses which the
Court of Chancery or such other court shall deem proper.
(c) To the extent that a director, officer, employee
or agent of a corporation has been successful on the merits
or otherwise in defense of any action, suit or proceeding
referred to in subsections (a) and (b) of this section, or in
defense of any claim, issue or matter therein, he shall be
indemnified against expenses (including attorneys' fees)
actually and reasonably incurred by him in connection
therewith.
(d) Any indemnification under subsections (a) and
(b) of this section (unless ordered by a court) shall be made
by the corporation only as authorized in the specific case
upon a determination that indemnification of the director,
officer, employee or agent is proper in the circumstances
because he has met the applicable standard of conduct set
forth in subsections (a) and (b) of this section. Such
determination shall be made (1) by the board of directors by
a majority vote of a quorum consisting of directors who were
not parties to such action, suit or proceeding, or (2) if
such a quorum is not obtainable, or, even if obtainable a
quorum of disinterested directors so directs, by independent
legal counsel in a written opinion, or (3) by the
shareholders.
(e) Expenses (including attorneys' fees) incurred by
an officer or director in defending any civil, criminal,
administrative or investigative action, suit or proceeding
may be paid by the corporation in advance of the final
disposition of such
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action, suit or proceeding upon receipt of an undertaking by
or on behalf of such director or officer to repay such amount
if it shall ultimately be determined that he is not entitled
to be indemnified by the corporation as authorized in this
section. Such expenses (including attorneys' fees) incurred
by other employees and agents may be so paid upon such terms
and conditions, if any, as the board of directors deems
appropriate.
(f) The indemnification and advancement of expenses
provided by, or granted pursuant to, the other subsections of
this section shall not be deemed exclusive of any other
rights to which those seeking indemnification or advancement
of expenses may be entitled under any bylaw, agreement, vote
of shareholders or disinterested directors or otherwise, both
as to action in his official capacity and as to action in
another capacity while holding such office.
(g) A corporation shall have power to purchase and
maintain insurance on behalf of any person who is or was a
director, officer, employee or agent of the corporation, or
is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise against
any liability asserted against him and incurred by him in any
such capacity, or arising out of his status as such, whether
or not the corporation would have the power to indemnify him
against such liability under this section.
(h) For purposes of this section, references to "the
corporation" shall include, in addition to the resulting
corporation, any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or
merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors,
officers and employees or agents, so that any person who is
or was a director, officer, employee or agent of such
constituent corporation, or is or was serving at the request
of such constituent corporation as a director, officer,
employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, shall stand in the same
position under this section with respect to the resulting or
surviving corporation as he would have with respect to such
constituent corporation if its separate existence had
continued.
(i) For purposes of this section, references to
"other enterprises" shall include employee benefit plans;
references to "fines" shall include any excise taxes assessed
on a person with respect to any employee benefit plan; and
references to "serving at the request of the corporation"
shall include any service as a director, officer, employee or
agent of the corporation which imposes duties on, or involves
services by, such director, officer, employee, or agent with
respect to an employee benefit plan, its participants or
beneficiaries; and a person who acted in good faith and in a
manner he reasonably believed to be in the interest of the
participants and
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<PAGE> 6
beneficiaries of an employee benefit plan shall be deemed to
have acted in a manner "not opposed to the best interests of
the corporation" as referred to in this section.
(j) The indemnification and advancement of expenses
provided by, or granted pursuant to, this section shall,
unless otherwise provided when authorized or ratified,
continue as to a person who has ceased to be a director,
officer, employee or agent and shall inure to the benefit of
the heirs, executors and administrators of such a person.
(k) The Court of Chancery is hereby vested with
exclusive jurisdiction to hear and determine all actions for
advancement of expenses or indemnification brought under this
section or under any bylaw, agreement, vote of stockholders
or disinterested directors, or otherwise. The Court of
Chancery may summarily determine a corporation's obligation
to advance expenses (including attorneys' fees).
The Restated Certificate of Incorporation limits the
liability of directors (in their capacity as directors, but not in
their capacity as officers) to the Company or its shareholders to the
fullest extent permitted by the DGCL, as amended. Specifically, no
director of the Company will be personally liable to the Company or
its shareholders for monetary damages for breach of the director's
fiduciary duty as a director, except as provided in Section 102 of the
DGCL for liability: (i) for any breach of the director's duty of
loyalty to the Company or its shareholders; (ii) for acts or omissions
not in good faith and which involve intentional misconduct or knowing
violation of law; (iii) under Section 174 of the DGCL, which relates
to unlawful payments of dividends or unlawful stock repurchases or
redemptions; or (iv) for any transaction from which the director
derived an improper personal benefit. The inclusion of this provision
in the Restated Certificate of Incorporation may have the effect of
reducing the likelihood of derivative litigation against directors,
and may discourage or deter shareholders or management from bringing a
lawsuit against directors for breach of their duty of care, even
though such action, if successful, might otherwise have benefitted the
Company and its shareholders.
Under the Restated Certificate of Incorporation and in
accordance with Section 145 of the DGCL, the Company will indemnify
any person who was or is a party, or is threatened to be made a party,
to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (other than a
"derivative" action by or in the right of the Company) by reason of
the fact that such person was or is a director or officer of the
Company, against expenses (including attorneys' fees), judgments,
fines and amounts paid in settlement actually and reasonably incurred
in connection with such action, suit or proceeding if such person
acted in good faith and in a manner such person reasonably believed to
be in or not opposed to the best interests of the Company, and, with
respect to any criminal action or proceeding, had no reasonable cause
to believe such acts were unlawful. A similar standard of care is
applicable in the case of derivative actions, except
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that indemnification only extends to expenses (including attorneys'
fees) actually and reasonably incurred in connection with the defense
or settlement of such an action and then, where the person is adjudged
to be liable to the Company, only if and to the extent that the Court
of Chancery of the State of Delaware or the court in which such action
was brought determines that such person is fairly and reasonably
entitled to such indemnity and then only for such expenses as the
court deems proper. The Company will indemnify, pursuant to the
standard enumerated in Section 145 of the DGCL, any past or present
officer or director who was or is a party, or is threatened to be made
a party, to any threatened, pending or completed derivative action by
or in the right of the Company.
The Restated Certification of Incorporation of the Company
provides that the Company may pay for the expenses incurred by an
indemnified director or officer in defending the proceedings specified
above in advance of their final disposition, provided that, if the
DGCL so requires, such indemnified person agrees to reimburse the
Company if it is ultimately determined that such person is not
entitled to indemnification. The Company's Restated Certificate of
Incorporation also allows the Company, in its sole discretion, to
indemnify any person who is or was one of its employees and agents to
the same degree as the foregoing indemnification of directors and
officers. To the extent that a director, officer, employee or agent of
the Company has been successful on the merits or otherwise in defense
of any action, suit or proceeding referred to in subsections (a) and
(b) of Section 145 of the DGCL, or in defense of any claim, issue or
matter therein, such person shall be indemnified against expenses
(including attorneys' fees) actually and reasonably incurred by such
person in connection therewith. In addition, the Company may purchase
and maintain insurance on behalf of any person who is or was a
director, officer, employee or agent of the Company or another
corporation, partnership, joint venture, trust or other enterprise
against any liability asserted against and incurred by such person in
such capacity, or arising out of the person's status as such whether
or not the Company would have the power or obligation to indemnify
such person against such liability under the provisions of the DGCL.
The company maintains insurance for the benefit of the Company's
officers and directors insuring that such persons against certain
liabilities, including civil liabilities under the securities laws.
Additionally, the Company has entered into indemnification agreements
with each of the Directors of the Company, which, among other things,
provides that the Company will indemnify such Directors to the fullest
extent permitted by the Restated Certificate of Incorporation and the
DGCL and will advance expenses of defending claims against such
Directors.
ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED.
Not applicable.
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<PAGE> 8
ITEM 8. EXHIBITS.
The Exhibits to this Registration Statement are listed in the Exhibit
Index on Page E-1 of this Registration Statement, which index is incorporated
herein by reference.
ITEM 9. UNDERTAKINGS.
(a) The Company hereby undertakes:
1. To file, during any period in which offers or sales
are being made, a post-effective amendment to this Registration Statement:
(i) To include any prospectus required by section
10(a)(3) of the Securities Act of 1993 (the "Securities Act").
(ii) To reflect in the prospectus any facts or events
arising after the effective date of the Registration Statement (or the most
recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in the
Registration Statement. Notwithstanding the foregoing, any increase or decrease
in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the
low or high end of the estimated maximum offering range may be reflected in the
form of prospectus filed with the Securities and Exchange Commission pursuant
to Rule 424(b) if, in the aggregate, the changes in volume and price represent
no more than a 20% change in the maximum aggregate offering price set forth in
the "Calculation of Registration Fee" table in the effective Registration
Statement.
(iii) To include any material information with
respect to the plan of distribution not previously disclosed in the
Registration Statement or any material change to such information in the
Registration Statement.
However, the information required to be included in a post-effective amendment
by paragraphs (1)(i) or (1)(ii) may instead be provided in periodic reports
filed with or furnished to the Securities and Exchange Commission by the
Company pursuant to Section 13 or 15(d) of the Exchange Act that are
incorporated by reference in this Registration Statement.
2. That, for the purpose of determining any liability under
the Securities Act, each such post-effective amendment shall be deemed to be a
new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
3. To remove from registration by means of a post-effective
amendment any of the securities being registered that remain unsold at the
termination of the offering.
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(b) The Company hereby undertakes that, for purposes of
determining any liability under the Securities Act, each filing of the
Company's annual report pursuant to section 13(a) or section 15(d) of the
Exchange Act (and, where applicable, each filing of an employee benefit plan's
annual report pursuant to section 15(d) of the Exchange Act) that is
incorporated by reference in this Registration Statement shall be deemed to be
a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under
the Securities Act may be permitted to directors, officers and controlling
persons of the Company pursuant to the foregoing provisions, or otherwise, the
Company has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the
Securities Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the Company
of expenses incurred or paid by a director, officer or controlling person of
the Company in the successful defense of any action suit or proceeding) is
asserted by such director, officer or controlling person in connection with the
securities being registered, the Company will, unless in the opinion of its
counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act and will be governed
by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
Company certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-8 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Baltimore, State of Maryland, on December 19,
1996.
CAPSTONE PHARMACY SERVICES, INC.
By: /s/ R. Dirk Allison
-------------------------------------
R. Dirk Allison
President and Chief Executive Officer
POWER OF ATTORNEY
Each person whose signature to this Registration Statement appears
below hereby appoints R. Dirk Allison and Donald W. Hughes, and each of them,
any one of whom may act without the joinder of the others, as his or her
attorney-in-fact to execute in the name and behalf of any such person,
individually and in the capacity stated below, and to file all amendments and
post-effective amendments to this Registration Statement, which amendment or
amendments may make such changes and additions in this Registration Statement
as such attorney-in-fact may deem necessary or appropriate.
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the date indicated.
<TABLE>
<CAPTION>
Signature Title Date
--------- ----- ----
<S> <C> <C>
/s/ R. Dirk Allison President, Chief Executive Officer December 19, 1996
- ------------------------------ (Principal Executive Officer) and
R. Dirk Allison Director
/s/ Donald W. Hughes Vice President, Chief Financial December 19, 1996
- ------------------------------ Officer (Principal Financial and
Donald W. Hughes Accounting Officer) and Secretary
/s/ Allan C. Silber Chairman December 19, 1996
- ------------------------------
Allan C. Silber
</TABLE>
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<TABLE>
<S> <C> <C>
/s/ Morris A. Perlis Vice Chairman December 19, 1996
- ------------------------------
Morris A. Perlis
/s/ Joseph F. Furlong, III Director December 19, 1996
- ------------------------------
Joseph F. Furlong, III
/s/ John Haronian Director December 19, 1996
- ------------------------------
John Haronian
/s/ Albert Reichmann Director December 19, 1996
- ------------------------------
Albert Reichmann
/s/ J. Brendan Ryan Director December 19, 1996
- ------------------------------
J. Brendan Ryan
/s/ Edward Sonshine Director December 19, 1996
- ------------------------------
Edward Sonshine
/s/ Gail Wilensky Director December 19, 1996
- ------------------------------
Gail Wilensky
/s/ John Zucotti Director December 19, 1996
- ------------------------------
John Zucotti
</TABLE>
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description of Exhibit
----------- ----------------------
<S> <C> <C>
4.1 -- Certificate of Incorporation of the Company (incorporated by
reference to Exhibit 3.1 to the Company's Quarterly Report on
Form 10-Q for the quarter ended August 31, 1995)
4.2 -- Bylaws of the Company (incorporated by reference to Exhibit 3.3
to the Company's Quarterly Report on Form 10-Q for the quarter
ended August 31, 1995)
4.3 -- Certificate of Ownership and Merger Merging Choice Mergeco, Inc. into
Choice Drug Systems, Inc. (incorporated by reference to Exhibit 3.2 to the
Company's Quarterly Report on Form 10-Q for the quarter ended August 30, 1995)
4.4 -- Certificate of Amendment (incorporated by reference to Exhibit A to
the Company's Proxy Statement for Special Meeting of Shareholders on
August 15, 1996)
5 -- Opinion of Harwell Howard Hyne Gabbert & Manner, P.C.
23.1 -- Consent of Arthur Andersen LLP, Independent Public Accountants.
23.2 -- Consent of Harwell Howard Hyne Gabbert & Manner, P.C.
(contained in Exhibit 5)
24 -- Power of Attorney (see page II-9)
</TABLE>
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Exhibit 5
December 19, 1996
Capstone Pharmacy Services, Inc.
2930 Washington Boulevard
Baltimore, Maryland 21230
Ladies and Gentlemen:
We have acted as special counsel to Capstone Pharmacy Services, Inc.
(the "Company") in connection with the registration of 100,000 shares of its
common stock to be issued under the provisions of the Company's 1996 Kantor and
Robbins Compensation Plan pursuant to a registration statement on Form S-8, as
filed with the Securities and Exchange Commission (the "Registration
Statement"). This firm hereby consents to the filing of this opinion as an
exhibit to the Registration Statement and with agencies of such states and
other jurisdictions as may be necessary in the course of complying with the
laws of such states and jurisdictions regarding the offering and sale of the
stock in accordance with the Registration Statement.
We have examined originals, or certified or photostatic copies of such
statutes, records, regulations, certificates of the officers of the Company and
of public officials, and such other information as we have deemed necessary for
purposes of rendering this opinion.
In stating our opinion, we have assumed: (i) that all signatures are
genuine, all documents submitted to us as originals are authentic, and all
documents submitted to us as copies conform to authentic original documents;
and (ii) that the parties to such documents have the legal right and power
under all applicable laws, regulations and agreements to enter into, execute,
deliver and perform their respective obligations thereunder.
On the basis of such review, but subject to the limitations expressed
herein, we are of the opinion, as of the date hereof, that the securities being
registered by the Registration Statement will, when sold as contemplated under
the Registration Statement, be legally issued, fully paid and non-assessable.
<PAGE> 2
Capstone Pharmacy Services, Inc.
December 19, 1996
Page 2
Our opinion herein is limited solely to the laws of the United States
of America and the corporate law of the State of Delaware. In rendering the
opinion set forth herein, we have relied upon the documents referenced above
and have made no independent verification or investigation of factual matters
pertaining thereto or to the Company. The opinion expressed herein is subject
to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance and other similar laws now or hereafter in effect relating to or
affecting the rights of creditors generally, judicial discretion, and equitable
principles whether applied pursuant to a proceeding at law or in equity; and no
opinion is expressed with respect to the availability of equitable remedies.
Very truly yours,
HARWELL HOWARD HYNE
GABBERT & MANNER, P.C.
<PAGE> 1
Exhibit 23.1
[Arthur Andersen LLP logo]
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in this registration statement of our reports dated March 11, 1996,
included in Capstone Pharmacy Services, Inc.'s Form 10-K for the ten months
ended December 31, 1995, and to all references to our Firm included in this
registration statement.
Arthur Andersen LLP
Baltimore, Maryland,
December 17, 1996