Imprimis Pharmaceuticals has entered into a stock purchase agreement to acquire South Coast Specialty Compounding, Inc., DBA Park Compounding (Park). The acquisition of Park is expected to close on or about January 1, 2015, subject to the satisfaction of certain customary closing conditions. As part of the transaction, Imprimis also entered into a non-exclusive license agreement with Park. The license agreement allows Park to immediately begin making and dispensing Imprimis’ proprietary ophthalmology and urology formulations in the 13 states in which it is currently licensed, including California, Nevada, Oregon, and Hawaii.
Following the close of the transaction, Imprimis expects Park to continue its current profitable sales model, while building upon the Park formulation portfolio with the addition of Imprimis’ patent-pending Dropless and other proprietary formulations. Imprimis anticipates that Park will recognize revenues of nearly $4 million in 2014. In addition, with this acquisition, Imprimis will gain access to the significant expertise of innovative pharmacists and an experienced staff, immediate prescription dispensing redundancy, and new licenses in key states.
The Park transaction represents the second pharmacy acquisition by Imprimis. On April 1, 2014, Imprimis acquired Pharmacy Creations, LLC, a New-Jersey based compounding pharmacy. With Park and Pharmacy Creations, both PCAB-accredited facilities, Imprimis can now distribute its formulations into 37 states, representing approximately 75% of the U.S. population. Imprimis is dedicated to adding additional state pharmacy licenses in the near term with the goal of reaching nationwide distribution capability. Imprimis may also build or otherwise access a 503B FDA-registered outsourcing facility to further its nationwide distribution channels.
“We are pleased to welcome the skilled team of professionals at Park to Imprimis,” stated Mark L. Baum, CEO of Imprimis. “The acquisition of Park adds momentum to our commitment to continue to expand our prescription dispensing capabilities and to operate at the highest quality standards. Importantly, we will now be able to make and distribute our growing portfolio of proprietary ophthalmic and urologic compounded drug formulations in new key markets. In addition, this acquisition will further our ability to capitalize on our unique business model, which is focused on addressing unmet patient needs while delivering safe, near-term and affordable medical solutions to Americans.”
“My wife Tina and I started Park 18 years ago and during that time we have grown Park to be a consistently profitable enterprise through well-established relationships and our deep commitment to quality. We strongly believe that Imprimis has the potential to revolutionize the way the market approaches novel drug formulation development. Our team is thrilled to join the Imprimis team and we look forward to building on our shared values of patient safety, outstanding customer service, high quality standards, and a tradition of innovation,” stated Dennis Saadeh, Pharm.D, FACA, Co-founder and Director of Quality Assurance at Park Compounding.