| NEW YORK
NEW YORK Nov 19 PharMEDium Services LLC, a
venture capital-backed provider of pharmacy compounding services
to hospitals, is in discussions to sell itself for close to $1
billion, according to people familiar with the matter.
The Lake Forest, Illinois-based company is working with
JPMorgan Chase & Co and is in talks with a small group
of potential private equity buyers, including TPG Capital LP,
about a possible deal, two of the people said on Tuesday.
The people asked not to be identified because the
negotiations are private. Representatives of PharMEDium,
JPMorgan and TPG did not immediately respond to requests for
PharMEDium operates centers in four U.S. states where it
compounds finished medicines from drug manufacturers and then
dispatches them to thousands of hospitals across the country.
Traditionally, pharmacists who compound medications mix
tailored doses for individual patients in response to a specific
The practice has mushroomed over the last decade, with some
pharmacies selling thousands of doses of regularly used mixtures
without prescriptions for physicians to keep for future use.
On Monday, the U.S. Senate approved a bill designed to
prevent quality control issues that led last year to a deadly
outbreak of fungal meningitis traced to a tainted pharmaceutical
mixed by a Massachusetts pharmacy.
PharMEDium was not associated with the scare and issued a
statement on Monday welcoming passage of legislation.
A sale of PharMEDium would come more than six years after
venture capital firm Oak Investment Partners bought a stake in
the company from the private equity and venture capital arms of
Robert W. Baird & Co, which together with PharMEDium founder and
chief executive David Jonas retained equity stakes.
The $200 million recapitalization of the company in 2007
also involved $73.5 million in credit facilities by Allied
Capital Corp, which has since been acquired by Ares Capital Corp
PharMEDium was created in its current form in 2003 through
the merger of newly formed PharMEDium Healthcare Corp with
Baxter International Inc's Compass Services unit.