So it’s no surprise that there is a vigorous market for the buying and selling of specialty pharmacy companies. Let’s kick off 2017 with a quick review of last year’s 14 significant specialty pharmacy mergers a & acquisition (M&A) transactions. Our list below includes only deals that were publicly announced in 2016.
I expect many more transactions in 2017. If you’re looking to pick up a fast-growing specialty pharmacy, click here for your shopping list.
Transactions are listed alphabetically by the acquirer’s name. I include links to any relevant Drug Channels articles, but not to each deal’s public announcement.
- The private equity firms ACON Investments and Triton Pacific Capital Partners purchased BioMatrix Specialty Pharmacy, which focuses on both infused and oral specialty drugs.
- Apothecary By Design (ABD), the fifth-largest independent specialty pharmacy in the Inc. 5000 list, acquired two complementary businesses: Village Fertility Pharmacy, a national fertility-focused specialty pharmacy based in Massachusetts, and Healy Pharmacy, a specialty pharmacy based in Illinois. (In 2015, ABD itself was acquired by BelHealth Investment Partners.)
- Avella Specialty Pharmacy, the second-largest independent specialty pharmacy, announced two acquisitions: Advanced Pharma Inc., a provider of compounded sterile preparations to hospitals and health systems, and Oncology Plus, a provider of patient-specific compounded therapies to oncology practices, hospitals, and payers.
- Diplomat Pharmacy acquired TNH Advanced Specialty Pharmacy, the third-largest independent specialty pharmacy. Diplomat paid $65 million in cash and $10 million in Diplomat common stock for TNH, which had annual revenues of about $400 million.
- The supermarket chain Kroger acquired ModernHEALTH, a large independent specialty pharmacy with multiple business segments operating from seven locations. ModernHEALTH was merged with Axium Pharmacy Services, which Kroger had acquired in 2012.
- The retail and specialty pharmacy Long's Drugs Inc., a portfolio company of Tailwind Capital, acquired Avita Drugs, a specialty pharmacy serving patient populations in Louisiana, Texas, North Carolina, South Carolina, and Virginia. (In 2014, Avita had acquired MedExpress Pharmacy.)
- Maxor National Pharmacy Services, a PBM and pharmacy services company, acquired Pharmaceutical Specialties, a specialty pharmacy focused on pulmonary, endocrine, and GI medicines.
- McKesson, the largest drug wholesaler, acquired Biologics, Inc., an oncology-focused specialty pharmacy that had estimated revenues of $900 million at the time of acquisition. (See Inside McKesson’s Acquisition of Biologics Specialty Pharmacy.)
- Premier, one of the largest group purchasing organizations (GPOs), acquired two specialty pharmacies: Acro Pharmaceutical Services and Community Pharmacy Services. Premier also operates Commcare Pharmacy, a specialty pharmacy it acquired in 2010. (See Premier’s Latest Acquisitions Show Hospitals’ High Hopes for Specialty Pharmacy.)
- ReCept Pharmacy, a Texas-based specialty and retail pharmacy, acquired Mississippi-based F&M Specialty Pharmacy, which services organ transplant patients.
If I missed your favorite deal, email me! Be sure to include a link to the public announcement.
P.S. Hat tip to Mike Hess at Bass Berry + Sims and Reg Blackburn at The Braff Group for highlighting a few deals that I had overlooked.