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August 24, 2015 – QuVa Pharma, Inc., a newly formed national platform for sterile compounding pharmacy services led by two experienced industry executives, announces it has completed the acquisition of the assets of the 503B Compounding Pharmacy Services Division of Healix, Inc., including its state-of-the-art manufacturing facility. QuVa Pharma has received a majority equity commitment from Bain Capital Private Equity, a leading global investment firm, to support the company’s creation and expansion plans. Financial terms of the private transaction were not disclosed.
The modern manufacturing facility QuVa Pharma has acquired, located in Sugar Land, Texas, provides high-quality, ready-to-use compounded sterile preparations to hospitals across the country. Built to meet the most stringent state and federal regulations, the facility is registered with the U.S. Food and Drug Administration (FDA) as an Outsourcing Facility under Section 503B of the Federal Food, Drug, and Cosmetic Act. QuVa Pharma expects to retain all current employees and to grow the capacity and staff of the facility over time.
QuVa Pharma has assembled an experienced executive team with deep background in aseptic manufacturing operating under FDA-regulated pharmaceutical current Good Manufacturing Practices (cGMP) guidelines. The management team, which will have a significant ownership stake in the business, is led by Stuart Hinchen, co-founder and Chief Executive Officer, and Peter Jenkins, co-founder and Chief Development Officer. Both executives bring to QuVa Pharma the experience and track records built during their tenure at JHP Pharmaceuticals and Mayne Pharma.
“QuVa Pharma is delighted to secure these cornerstone assets, which establish a major platform for compounding pharmacy services with deep experience and understanding of pharmaceutical cGMP standards,” stated Hinchen. “We will build off the exceptional record and reputation of Healix to create a large, national pharmacy outsourced compounding partner that works with customers in a collaborative manner. With the support of Bain Capital Private Equity, we will be able to aggressively pursue an expansion strategy that will result in a deeper and broader service offering. We will be attentive, responsive, and offer a robust product portfolio that is of the highest quality.”
“The majority of the senior management will have specific experience in FDA-regulated aseptic manufacturing,” said Jenkins. “We believe this will prove to be a substantial source of differentiation versus our competitors.”
QuVa Pharma will leverage the resources and healthcare investment experience of Bain Capital Private Equity to expand its current operations and open additional locations. “We have been impressed with the quality record of Healix in compounding pharmacy services, and believe there is an enormously compelling opportunity to build a strong business in this growing market,” said Chris Gordon, a Managing Director of Bain Capital Private Equity, which has invested in such healthcare companies as HCA, Quintiles and Emcure Pharmaceuticals. “The management team has demonstrated an outstanding capability to build quality-focused, high performance businesses, and we are delighted to partner with them in this venture.”
“This transaction represents the continued successful execution of our strategy for long-term growth,” stated Alan Chaveleh, co-founder, President and CEO of Healix. “Importantly, it will enable us to redeploy our current investments in these assets to our ongoing Infusion Therapy business and other initiatives. We have ownership and Board representation, so we can contribute to and share in the success,” Chaveleh continued. Healix Chairman of the Board and co-founder Mort Baharloo added, “We fully expect QuVa Pharma will be an outstanding company.”
Guggenheim Securities, LP acted as exclusive financial advisor, and Baker Botts LLP served as legal counsel to Healix in connection with the transaction. Blank Rome LLP served as legal counsel to management, and Ropes & Gray LLP served as legal counsel to Bain Capital.
QuVa Pharma is a recently formed company with the plan to be a leading industry 503B platform and partner of choice for compliance-oriented healthcare facilities looking to ensure a quality, safe and consistent supply of medications. The Company is committed to having a patient-first orientation, as well as a robust product portfolio, leading safety standards, and collaborative, partnership-oriented customer service. For more information, visit www.quvapharma.com.
Bain Capital Private Equity has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since our founding in 1984. Our team of more than 400 investment professionals creates value for our portfolio companies through our global platform and depth of expertise in key vertical industries including consumer/retail, financial and business services, healthcare, industrials, and technology, media and telecommunications. In addition to private equity, Bain Capital invests across asset classes including credit, public equity and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.
Since its inception in 1989, Healix Infusion Therapy, Inc. has been driven by its mission of helping healthcare facilities and medical providers offer excellence in patient care. With corporate headquarters in Sugar Land, Texas, Healix is the national leader in the delivery of parenteral and management services to medical specialties, such as infection disease, neurology, gastroenterology and related fields. The privately-held company also provides a centralized pharmacy operation (503A), which enables it to offer customizable, turn-key products and services to its physician and hospital clients. More information can be found at www.Healix.net.
This press release has been updated to reflect the new business unit name, "Bain Capital Private Equity," which was changed from "Bain Capital" or "Bain Capital, LP."
