Bain Adds to Compounding Pharma Services Platform

The firm’s Jeff Schwartz tells Privcap about how the acquisition of a manufacturing facility jump-started a portfolio company expansion.

Bain Capital Private Equity is building out its sterile compounding pharmacy services platform, announcing its latest acquisition of a state-of-the-art manufacturing facility in Texas. QuVa Pharma, a newly formed portfolio company backed by Bain, recently acquired the manufacturing plant from Healix Infusion Therapy.

QuVa provides ready-to-use compounded sterile preparations to hospitals across the country. The company was created by Bain along with QuVa CEO Stuart Hinchen and chief development officer Peter Jenkins.

The market is “underserved today,” says Jeff Schwartz, a principal with Bain. “There is a desire for additional suppliers.”

Schwartz says there is an immense opportunity for QuVa’s organic growth. The future points to hospitals increasingly outsourcing to obtain these compounds, because their own pharmacies do not have the necessary facilities. QuVa will mix and deliver customized medications that hospitals cannot make, with the expectation that the platform company will become a leader in this niche industry.

With this acquisition, QuVa expects to retain all current employees of the Healix division, with plans to gradually grow the capacity and staff. The 30,000-square-foot facility, located in Sugar Land, Texas, will serve as the cornerstone of a platform for compounding pharmacy services. In addition to opening more locations and stimulating organic growth, Bain has plans to make add-on acquisitions to grow the QuVa platform business—headquartered in New Jersey—as the company continues to expand.

Both Hinchen and Jenkins will retain “significant” ownership stakes in QuVa, according to the acquisition announcement. Both are co-founders of the business and have worked at pharmaceutical companies in the healthcare space for a number of years. The QuVa management team has a deep background in FDA-regulated pharmaceutical manufacturing practices.

“We have partnered with a great management team,” Schwartz says.

While Hinchen and Jenkins will run the day-to-day operations of QuVa, Bain will remain a “highly engaged and active sponsor,” says Schwartz, and QuVa will leverage Bain’s resources and healthcare experience. The firm’s portfolio has included a number of healthcare investments, including HCA, Quintiles, and Emcure Pharmaceuticals. Healix, the former parent company, will retain ownership and board representation.