Hoover Rx

After 40 years of operating specialty pharmacies in the Bay area, the ownership team (Russell Zukin and Jonathan Han) felt it was time to spin-off their Palo Alto retail location and focus their efforts on transplant therapy patients out of their other locations.

URAC & ACHC-accredited open door specialty pharmacy serving Stanford University Medical patients out of the historic Hoover Pavilion.

Client

  • Founder has over 40 years of experience in retail and specialty pharmacy operations.
  • Well-known and highly trafficked specialty and retail pharmacy with close to $60 million in annual sales.
  • Although a heavy emphasis on transplant therapies, pharmacy dispensed a variety medications including HIV.
  • Since 2011, operations was tasked to build a specialty pharmacy brand with nationwide recognition licensed in all 50 states.

Objective

  • After years of struggling with low-margin therapies, PBMs, and finally Medi-Cal Rx; ownership decided to spin off all of their non-transplant patients.
  • An operational shift from growth to profitability, which entailed reductions to labor and cost of goods.
  • Winding down Hoover pharmacy and finding a buyer for the files.

Result

  • Carved out the patients and therapies which did not meet the objectives of the pharmacy.

  • With a defined list of assets, CVS was identified as potential buyer of the files and inventory.

  • Negotiated an asset purchase of Hoover which infused capital into the parent organization and deployed labor and goods which would have otherwise been lost.

  • The parent company now operates at a record margin with clear mission to exclusively dispense transplant meds.

“Andre and his team were instrumental in driving value for our pharmacy and securing the ideal buyer to meet our specific sale criteria. His reliable and consistent guidance allowed us to focus on maintaining operations throughout the transaction while introducing a buyer that would faithfully continue our legacy of care with our patients across the bay area”

Jonathan Han, COO of Hoover Pharmacy.

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