Salveo Specialty Pharmacy, Inc. Completes Additional Equity and Debt Financings and Acquisition of Mission Road Pharmacy
SAINT PETERSBURG, Fla., Dec. 4, 2012 /PRNewswire/ -- Salveo Specialty Pharmacy, Inc., a specialty pharmacy company backed by Three Arch Partners, NewSpring Capital and Petra Capital Partners, today announces the completion of a second round of equity and debt funding, and its subsequent acquisition of Mission Road Pharmacy, a pharmacy based in Los Angeles, California focused on Oncology, HIV/AIDS, Hepatitis, Rheumatoid Arthritis and Mental Health therapies.
The additional equity financing was led by new investor, Sofinnova Ventures of Menlo Park, California. The debt financing included additional subordinated debt provided by Petra, as well as a new senior credit facility provided by Regions Bank. Garheng Kong, MD, PhD of Sofinnova will join the Salveo Board of Directors in conjunction with the investment.
Co-founded by Jeff Freedman (CEO) and Chuck Brown (COO), Salveo Specialty Pharmacy is a specialty pharmacy company focused on the acquisition and operation of selected specialty pharmacies throughout the United States. Focusing on chronic and often underserved disease states, the Company acquires pharmacies that share its commitment to improving chronic disease management and complement its existing operations, and then integrates them into a leading and unified specialty pharmacy organization. With the Mission Road Pharmacy acquisition, Salveo now has clinically-focused specialty pharmacy operations based in New York and Los Angeles, the two largest markets in the nation. Salveo will continue to focus on expanding its current customer base in these and new markets as well as integrating further acquisition targets. The former owners of Mission Road Pharmacy intend to remain with Salveo post-transaction.
Commented Garheng Kong, General Partner at Sofinnova Ventures, "We are excited to have partnered with the entire Salveo team to provide the Company with additional equity financing to support the Company's future growth. Salveo has assembled a strong management team and investor group experienced at growing young healthcare services companies. Sofinnova has successfully invested in specialty pharmaceutical products for many years, and Salveo represented a compelling opportunity for us to leverage that expertise to enter the rapidly-growing specialty pharmacy space.
Added Greg Ratliff, Senior Vice President with Regions' Healthcare Group, "We are very pleased about the opportunity to partner with Salveo and enhance its capital position as it continues to grow both organically and through acquisition. Regions has an extensive lending background within healthcare services and specialty pharmacy, and we look forward to providing debt capital to Salveo as it continues to execute on its strategic goals and initiatives."
The former principals of Mission commented, "We are thrilled to have found an ideal partner in Salveo. The Salveo team shares our same philosophy of always prioritizing superior patient care, customer service and clinical excellence. We are look forwarding to an excellent working relationship with the Salveo team and the continued growth of our business."
"The Salveo management team welcomes our new partners in Sofinnova Ventures and Regions Bank. Sofinnova brings to Salveo a wealth of experience in healthcare investing, providing capital and expertise to support the growth of emerging pharmaceutical and biotech companies. Additionally, Regions has a strong healthcare lending practice and a proven track record assisting growth-oriented companies like Salveo fund their expansion plans. With the continued support of Three Arch, NewSpring and Petra, and the addition of Sofinnova and Regions to the Salveo team, we have exciting plans to expand and extend our services to meet the complex needs of our patients and customers," said Jeff Freedman, CEO of Salveo. "And we look forward to working with the former owners of Mission and their entire team, who together have built an exceptional specialty pharmacy known for its clinical expertise, dedicated staff and their superior customer service and commitment to patient care."
About Salveo Specialty Pharmacy, Inc.
Salveo Specialty Pharmacy, Inc., a private company headquartered in Saint Petersburg, Florida, was formed to create a leading specialty pharmacy organization serving patients and customers across the country. Salveo acquires, integrates and grows select specialty pharmacy organizations that share its philosophy of providing superior customer service and clinical patient care to the chronically ill population. With this latest acquisition, Salveo further enhances its ability to deliver targeted and cost-effective therapy management services to an expanding base of chronic patients and their physicians, healthcare providers, and insurance plans.
About Three Arch Partners
Three Arch Partners was formed to provide young companies with access to relevant clinical and business resources, as well as capital. Three Arch manages over $1 billion in capital. To date, Three Arch has helped create, build and fund more than 100 important new healthcare companies. These companies have often become the clinical and market leaders in their respective fields, and have generated strong returns. The firm only invests in healthcare and focuses on opportunities in medical devices and healthcare services. Three Arch Partners is headquartered in Portola Valley, California. For more information, please visit Three Arch's website at www.threearchpartners.com.
About NewSpring Capital
NewSpring Capital is a family of private equity funds providing growth and expansion capital for companies primarily in the Mid-Atlantic region. NewSpring Capital currently has over $700 million of assets under management. The family of NewSpring Capital funds consists of (i) NewSpring Health Capital, which provides equity capital to healthcare companies within the healthcare services, specialty pharmaceutical and medical device sectors, (ii) NewSpring Mezzanine Capital, which provides mezzanine capital for expansion stage and buyout opportunities in the business services, healthcare, information technology, and specialty manufacturing sectors, and (iii) NewSpring Growth Capital, which provides equity capital to growth and expansion stage companies with a focus on business services, enabling technology and information technology. NewSpring Capital currently has offices in Radnor, Pennsylvania, Short Hills, New Jersey, and Washington, D.C. To learn more about NewSpring Capital, please visit www.newspringcapital.com.
About Petra Capital Partners
Petra Capital Partners, LLC is a private equity firm based in Nashville, Tennessee. The firm is actively investing its second SBIC fund, Petra Growth Fund II, which has $160 million of available capital to invest. Its previous funds under management total $130 million. Petra provides non-control subordinated debt and/or preferred stock to high growth companies for expansion, acquisition, buyout, refinancing or recapitalization in partnership with the founding management team. Petra seeks to invest up to $15 million in growth companies that possess a minimum of $10 million in revenue and positive EBITDA at the time of investment. The fund targets business, healthcare and information technology services companies. For more information, please visit Petra's website at www.petracapital.com or call (615) 313-5999.
About Sofinnova Ventures
Sofinnova Ventures has over 40 years of experience building healthcare companies into market leaders. With $1.4 billion in committed capital, the firm applies capital and expertise to take companies from inception to exit. Sofinnova closed its life science-focused $440M, SVP VIII, in late 2011. The firm's investment team of MDs and PhDs has significant scientific, operational and strategic experience, and specializes in financing later stage clinical products and growth companies. The firm partners with entrepreneurs to address patients' unmet medical needs. Sofinnova Ventures has offices in Menlo Park and La Jolla, California. For more information, please visit www.sofinnova.com.
About Regions Bank
Regions Financial Corporation, with $122 billion in assets, is a member of the S&P 500 Index and one of the nation's largest full-service providers of consumer and commercial banking, wealth management, mortgage and insurance products and services. Regions serves customers in 16 states across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,700 banking offices and 2,000 ATMs. Additional information about Regions and its full line of products and services can be found at www.regions.com.
CEO, Salveo Specialty Pharmacy
SOURCE Sofinnova Ventures