Houlihan Lokey Advises Pharmaceutical Strategies Group

Houlihan Lokey is pleased to announce that Pharmaceutical Strategies Group, a portfolio company of Blue Wolf Capital Partners, has completed the sale of its 340B Link Business to Omnicell, Inc. (NASDAQ:OMCL) for $225 million. The transaction closed on October 1, 2020.

Established in 2011 and headquartered in Plano, Texas, 340B Link provides a comprehensive and differentiated suite of technology-enabled services and solutions used by certain eligible hospitals, health systems, clinics, and entities to manage compliance and capture 340B drug cost savings on outpatient prescriptions filled through the eligible entity’s pharmacy or a contracted pharmacy partner. 340B Link combines industry-leading software, deep knowledge of the 340B program, and technology-enabled services that deliver superior outcomes for its customers, significantly improving compliance through split billing, contract pharmacy administration, specialty contract pharmacy administration, and drug discount access solutions. Since 2011, 340B Link has been helping customers manage their 340B programs efficiently and compliantly in support of high-quality patient care.

For more than 25 years, Pharmaceutical Strategies Group has been relentlessly advocating for clients as they navigate the complex and ever-changing challenges of drug cost management. Pharmaceutical Strategies Group’s innovative consulting and technology solutions, including the proprietary data and analytics platform Artemetrx, deliver actionable insights with exceptional financial and clinical value. As the largest independent pharmacy-benefit consulting firm in the U.S., Pharmaceutical Strategies Group functions as a strategic partner to self-insured employers, health plans, brokers, coalitions, and health systems, generating more than $4.8 billion in drug cost savings each year.

Pharmaceutical Strategies Group is a portfolio company of New York–based Blue Wolf Capital Partners, a leading private equity fund manager specializing in control investments in middle-market companies. Leading by experience and with a commitment to excellence, Blue Wolf collaborates with management to transform companies strategically and operationally. Blue Wolf manages challenging situations and complex relationships between businesses, customers, employees, unions, and regulators to create value for stakeholders.

Omnicell, Inc. (NASDAQ:OMCL) is a leading provider of medication management solutions and adherence tools for health systems and pharmacies. Since 1992, Omnicell has been committed to transforming the pharmacy care delivery model to dramatically improve outcomes and lower costs. Through the vision of the Autonomous Pharmacy, a combination of automation, intelligence, and technology-enabled services powered by a cloud data platform, Omnicell supports more efficient ways to manage medications across all care settings. More than 6,000 facilities worldwide use Omnicell automation and analytics solutions to help increase operational efficiency, reduce medication errors, deliver actionable intelligence, and improve patient safety. More than 40,000 institutional and retail pharmacies across North America and the United Kingdom leverage Omnicell's innovative medication adherence and population health solutions to improve patient engagement and adherence to prescriptions, helping to reduce costly hospital readmissions.

Houlihan Lokey served as the exclusive financial advisor to Pharmaceutical Strategies Group and assisted in initiating, structuring, and negotiating the transactions on its behalf. This transaction represents Houlihan Lokey’s continued leadership and momentum in the healthcare technology and tech-enabled services sector, having advised on 31 transactions since 2015. Houlihan Lokey’s Healthcare Group is among the largest dedicated healthcare investment banking groups in the country. In 2019, the group closed 27 transactions and was ranked the No. 1 advisor for U.S. healthcare M&A transactions under $1 billion by Refinitiv (formerly known as Thomson Reuters). Houlihan Lokey's Healthcare Group has closed more than 300 M&A healthcare transactions since inception.