Pharma Logistics Acquires Stericycle's Pharmaceutical Reverse Distribution Division to Expand Healthcare Waste Management Business

VCBeat (WeChat ID: vcbeat) learned from foreign media that on October 28, 2019, Pharma Logistics announced the acquisition of Stericycle’s (NASDAQ: SRCL) pharmaceutical reverse distribution division. The terms of the acquisition were not disclosed.

Pharma Logistics, established in 1996, is a pharmaceutical company specializing in reverse distribution of medications. Its core business involves managing the return credit process for medical waste from hospitals, Integrated Delivery Networks (IDNs), retail pharmacies, government agencies, and closed-door pharmacies.

Stericycle, founded in 1989 and headquartered in Illinois, is a leading provider of regulatory compliance solutions. In the late 1980s, improperly disposed medical waste began washing up on Atlantic coastlines. Shortly thereafter, the U.S. Congress passed the Medical Waste Tracking Act of 1988, marking the birth of the U.S. medical waste industry.

Around the same time, Dr. James Sharp developed a business plan primarily aimed at providing hospitals with an environmentally friendly and cost-effective solution for managing medical waste. Building on this plan, Dr. James Sharp founded Stericycle in 1989.

Over the past 25 years, Stericycle has grown from a medical waste management startup into a leader in a highly regulated industry. Today, Stericycle serves one million customers across all 50 U.S. states and in 20 countries and regions worldwide, offering solutions for regulated waste management, secure information destruction, compliance management, customer engagement, and brand protection.

As part of the acquisition, Stericycle’s field service technicians in Puerto Rico have joined the Pharma Logistics team. Following the completion of the acquisition, Stericycle’s customers will experience no service interruptions, and the processing of return orders will be immediately transferred to Pharma Logistics’ processing center in Libertyville, Illinois. Pharma Logistics’ customer representatives will work closely with Stericycle’s customers to ensure a smooth transition.

Michael Zaccaro, President and CEO of Pharma Logistics, stated, “We are delighted to welcome Stericycle into the Pharma Logistics family. The strategic acquisition of Stericycle’s pharmaceutical reverse distribution division will further solidify our position as a leader in the independent retail market and expand our international service reach to Puerto Rico. Pharma Logistics’ rapid credit program will bolster these pharmacies’ cash flow while also providing them with safe and effective medication disposal options.”

Stericycle CEO Cindy Miller said, “Proper medication disposal is a significant concern in today’s society. As a company focused on pharmaceutical reverse distribution, we believe Pharma Logistics will provide customers with safe and compliant services.”

(Compiled by He Li)