The Business

Avita Drugs, Inc. (www.avitapharmacy.com) is a Baton Rouge, Louisiana-based specialized pharmacy serving the needs of people living with chronic health conditions, including HIV, hepatitis C, mental health, and solid organ transplants, among others.  Avita offers a broad range of differentiated, high-touch solutions to patients and healthcare providers including (i) proprietary adherence programs, (ii) personalized patient counseling and education, (iii) extensive 340B pharmacy dispensing, administration, and reporting services, and (iv) comprehensive patient reporting services.  Avita operates seven locations in Louisiana, Texas, and North Carolina and generates annual revenue of approximately $360 million.

 

The Industry

Avita participates in the rapidly growing $100+ billion U.S. specialty pharmacy industry, which consists of companies that provide dispensing, delivery, dosing, and reimbursement services for clinically intensive, high-cost specialty drugs.  Continued growth of Avita’s specialty pharmacy services will be driven by (i) an aging U.S. population, (ii) increasing life-spans of patients affected by chronic diseases, (iii) growth in the number and availability of specialty drugs, and (iv) expanding utilization of the 340B program among healthcare providers.

 

The Process

Prestwick Partners initiated this transaction and acted as the exclusive financial advisor to Avita and Argenta Partners, a Dallas-based private equity group.  Prestwick designed an M&A process, prepared marketing materials, evaluated acquisition proposals, and negotiated the transaction with Long’s, a South Carolina-based pharmacy services provider and Tailwind Capital, a New York-based private equity group. Prestwick’s process included both domestic and international strategic acquirers as well as private equity groups.