$52 Million Specialty Pharmacy

After nearly a decade of providing services, the controlling partners wanted to understand their options in the market for a transition or sale. The asset base included all major contracts, a strong network of patients, established distribution channels, and licenses across all 50 states.

The pharmacy had increasing sales, but shrinking profit, due to the PBM contracts constantly squeezing them. The ever-growing frustrations of running a specialty pharmacy led the sellers to contract Andre about finding a buyer and running an M&A process.

Client

$52 Million Specialty Pharmacy established in 2011
Dual Accredited (ACHC & URAC) with a focus on Gastroenterology, Rheumatology, and Dermatology therapies
Licensed in all 50 states with Headquarters in Kansas City, Missouri

Objective

Identify a strategic buyer to purchase the assets of the pharmacy
Exit the Specialty Pharmacy segment, because of the administrative and operational frustrations, but remain in pharmacy focusing on their regional retail operations.
Hold out for a buyer who recognizes the value of PBM contracts and distribution channels

Result

Consummated a stock purchase with a larger strategic infusion pharmacy looking to expand their industry segment and geographic footprint.
Negotiated all facets of the transaction, including Net Working Capital, Non-Compete, Subscription agreement, and Representations and Warranties.
Successfully transferred all 50 state licenses, immediately giving the buyer the ability to distribute throughout the US.
Sellers remained as senior management with stock options, satisfied that the buyer would shoulder the administration of a specialty pharmacy, in particular dealing with PBM contracts.

“When it came time to sell, Andre was our first and only choice. There were numerous challenges in finding a buyer to meet our criteria and ultimately purchase our pharmacy. Through the entire listing period, Andre was responsive, using his experience to overcome every obstacle. We can honestly say that if it were not for Andre, it is unlikely that we would have successfully sold our pharmacy, much less arrived at the beneficial terms of the final purchase agreement.”

Darren L.
Specialty Pharmacy based in Missouri

Questions about the sale process or current multiples within your unique healthcare segment?