6 PE-backed pharmacy service deals target growth

Oak Hilll, PSG, HCAP, Elevance, Kinderhook and Hildred are among the investors.

Technology is infusing pharmacies, as customers demand the same experience they have with other types of retail, like online service and home delivery. To fill the need, pharmacy services have been thriving, and private equity firms have seized on the opportunity.

PE Hub has observed a steady stream of private equity-backed pharmacy investments this year. Here, we highlight six deals, starting with the most recent.

1. Hildred backs specialty services provider AleraCare

New York-based Hildred Capital Management, a healthcare-focused private equity firm, made a strategic investment in AleraCare, a Phoenix-headquartered provider of infusion and specialty pharmacy services.

Founded in 2019, the company said its core lines of business include ambulatory infusion centers, home infusion therapy, specialty pharmacy and compounding pharmacy. The combination of these services was attractive to Hildred, which sees greater prospects for success in this sector, Andrew Goldman, co-founder and managing partner said.

“We seek to back exceptional management teams in structurally attractive healthcare sectors that have sizeable market potential, excellent growth prospects, attractive innovation opportunities and manageable pricing trends and competition,” said Goldman, in the deal announcement.

2. HCAP Partners invests in Xevant

San Diego-based HCAP Partners invested in Xevant, a Lehi, Utah-based provider of automated data analytics for organizations managing pharmacy benefits.

Xevant’s platform infuses real-time automation and alerts throughout the data analysis process, aiming to accelerate and simplify report building for pharmacy benefits managers, pharmaceutical technical assistants, health plans, brokers and consultants.

“Xevant’s innovative solutions and talented team of experts are changing the way that access, quality and cost issues are approached by healthcare stakeholders,” said Frank Mora, HCAP senior partner, in a statement.

3. PSG-backed DoseSpot bought e-prescribing platform TreatRx from Bravado Health

DoseSpot, a portfolio company of PSG, a Boston-based PE firm, in March acquired TreatRx, an e-prescribing platform, from Bravado Health, a West Palm Beach-headquartered digital health company.

DoseSpot is based in Dedham, Massachusetts. The company is a provider of software for clinicians to write and transmit prescriptions for pharmacies electronically.

4. Kinderhook-backed Avita Care acquires trio of specialty pharmacies

Earlier in the year, Avita Care, a portfolio company of New York-based Kinderhook Industries, acquired three San Antonio-based specialty pharmacies.

The transaction represents Kinderhook’s 77th healthcare-related transaction. This acquisition will help Avita to expand both its footprint and its suite of services, said Chris Michalik, Kinderhook managing director.

5. Elevance Health acquires BioPlus, a subsidiary of CarepathRx

In February, BioPlus, which was a subsidiary of CarepathRx, a portfolio company of Nautic Partners, was bought by Elevance Health.

BioPlus provides a range of specialty pharmacy services for patients living with complex and chronic conditions, such as cancer, multiple sclerosis, hepatitis C and autoimmune diseases, said the company, adding that it covers more than 100 limited distribution medications with a footprint that touches all 50 states.

6. Oak Hill partners with Renick to form new platform Petauri Health

Oak Hill Capital in February teamed up with Dan Renick to form Petauri Health, a New York City-based pharmaceutical commercialization services platform.

Based in New York, Oak Hill aims to deploy more than $250 million behind this initiative over time. Petauri Health will seek to acquire and combine companies with expertise in global market access, medical affairs, patient services, and data and analytics.

Renick is a longtime healthcare executive.

“We look forward to working with Dan to construct a leading and purpose-built pharmaceutical services commercialization company,” said Micah Meisel, partner and head of healthcare at Oak Hill, in a statement. “Dan’s deep subject matter expertise and broad experience across multiple therapeutic areas and healthcare services make him an ideal partner as Oak Hill endeavors to assemble a platform in this attractive industry.”