Enhanced Healthcare Partners and Bourne Partners Strategic Capital Acquire Pharmaceutical Associates to Expand Generic Drug Market Share

VCBeat (WeChat ID: vcbeat) learned from Business Wire that on November 6, 2019, U.S. private equity firm Enhanced Healthcare Partners (EHP) announced the joint acquisition of pharmaceutical company Pharmaceutical Associates (PAI) together with Bourne Partners Strategic Capital (BPSC). The financial terms of the transaction were not disclosed.

Through this acquisition, EHP and BPSC will establish a strategic partnership with PAI, providing market resources and growth capital to enhance PAI’s generic drug manufacturing capabilities, expand its product portfolio, and increase its market share in the generics sector, thereby laying the foundation for the company’s rapid market expansion.

PAI, established in 1968, is a pharmaceutical company headquartered in Greenville, South Carolina, USA. PAI manufactures and markets generic drugs, and is a leader in quality, safety, and productivity among North American pharmaceutical suppliers. The company is committed to producing and selling generic medications to hospitals, independent pharmacies, retail chains, long-term care facilities, and government agencies.

For nearly 50 years, PAI has been at the forefront of producing highly targeted suspensions, oral solutions, elixirs, and syrups. To meet the unique needs of retail chains, independent pharmacies, hospitals, long-term care facilities, and government agencies, PAI offers standard bottle packaging and ready-to-administer unit-dose packaging. The company was the first pharmaceutical manufacturer to develop vertically integrated unit-dose (UD) packaging. Compared with existing bulk bottle packaging, PAI’s unit-dose liquid packaging offers superior advantages, including improved medication adherence, reduced drug waste, and enhanced therapeutic efficacy, ultimately delivering outstanding treatment outcomes for patients.

Regarding this acquisition, Kurt Orlofski, CEO of PAI, stated, “We recognize that we are at a critical inflection point in the company’s development and have decided that now is the time to bring on financial partners who can help accelerate our growth. Selecting the right partners was a careful and deliberate process. It is clear that EHP’s expertise will help realize our strong vision for moving forward. In addition, BPSC played a role in facilitating this transaction and, given its deep network in the pharmaceutical sector, will serve as a true value-added partner. Together, we can accelerate our expansion and innovation initiatives and attract the right talent to help grow our dynamic company. PAI is honored to count EHP and BPSC as our partners.”

Matt Thompson, a partner at EHP, stated, “We are delighted to have the opportunity to help PAI continue to build its market leadership in the single-dose liquid medication sector by expanding its capacity, product portfolio, and overall capabilities. PAI is an exciting presence, as it can improve patient outcomes through accurate medication dispensing and reduced medication waste, thereby achieving a win-win outcome for patients, hospitals, and the entire healthcare system.”

“More than a year ago, when we met with the team at PAI, we knew we could partner with them to propel PAI into its next phase of growth,” said Minor Hinson, Chief Investment Officer at BPSC. Banks Bourne, founder of BPSC, also stated, “We believe EHP is the right partner to achieve this goal.”

Enhanced Healthcare Partners is a private equity firm focused on the healthcare sector, dedicated to making equity investments in small- to mid-cap companies led by founders and entrepreneurs. The EHP team comprises professionals with extensive experience in healthcare, operations, consulting, and investment management, and has managed approximately $1 billion in equity capital.

Bourne Partners Strategic Capital, a subsidiary of Bourne Partners, is an investment firm focused on the pharmaceuticals, pharmaceutical services, over-the-counter (OTC) drugs, and consumer health sectors. Established in 2001, Bourne Partners is a Canadian investment banking and advisory firm specializing in these same core areas, dedicated to meeting the unique needs of renowned mid-sized healthcare and pharmaceutical companies worldwide.

(Compiled by Wang Fang)