New Pharma Services Provider Offers Clinical Packaging, Drug Delivery
Water Street Healthcare Partners, a private equity firm focused exclusively on the healthcare industry, has acquired the Pharmaceutical Development division from AAIPharma Inc. Under the new company AAIPharma Services Corp., Water Street will expand capabilities in pharmaceutical development services. Capabilities include analytical chemistry, formulation development, clinical packaging, oral drug delivery, and contract manufacturing.
“We are thrilled to partner with Water Street to establish ourselves as an independent company,” said new CEO L. Lee Karras in a press release. “In addition to providing significant capital resources, Water Street offers extensive pharmaceutical expertise that will benefit our company, employees and customers as we embark on a new strategic course. Together with Water Street, we will build on our core strengths to provide our customers with unparalleled knowledge and capabilities that will enable them to successfully navigate the complex drug development process.”
AAIPharma Services Corp. will retain its headquarters in Wilmington, NC. It serves more than 300 large pharmaceutical and biotechnology companies throughout North America. Its team of 450 scientists and professionals specialize in services that encompass the entire process of pharmaceutical drug development from discovery through commercialization.
In 2008, pharmaceutical and biotechnology companies invested more than $115 billion in drug research and development globally. They are estimated to have outsourced as much as a quarter of that expense, the press release states.
“The rising complexity of drug development and the costs related to maintaining those capabilities in-house are leading global pharmaceutical and biotech companies to increasingly turn to outside resources for assistance,” said Al Heller, an operating partner with Water Street who has more than 30 years of pharmaceutical experience including leading operations for G.D. Searle. “AAIPharma Services goes beyond traditional levels of support to provide customers with unique expertise and capabilities that creatively address challenges that arise during drug development and manufacturing. The company is highly regarded for collaborating with customers to ensure they consistently achieve high-quality results. This is the unique value proposition that we intend to build on.”
Water Street Healthcare Partners has partnered with some of the world’s leading health care companies on its investments including Johnson & Johnson, Medtronic, and Smith & Nephew.