Generex Biotechnology said yesterday that it inked a deal to acquire medical and surgical product distributor Medisource Partners in a deal worth approximately $1 million.
Miramar, Fla.-based Generex said that the deal includes all assets of Medisource including its business operations, accounts receivable, inventory, contracts and real estate for $1 million worth of Generex stock, as well as additional cash and stock considerations for achieving certain sales and profit milestones.
“The strategic acquisition of Medisource Partners provides Generex with a value-added service model that fits the corporate mission of NuGenerex Distribution Solutions, adding immediate revenues and profits, while providing significant upside as we integrate the medical and surgical supply business into our current and future MSO networks. The extensive lines of surgical and biological products offered in the Medisource catalogue will enable us to expand our offerings to now include hospital systems, as well as our MSO partners. Our management services will not only integrate purchasing and billing, but will provide better pricing and access to new products, especially biologics, including platelet rich plasma, bone marrow aspirate, cord blood, and bone implants. We are excited that the acquisition of Medisource will provide access to a whole new line of products that not only enhances our current MSO network in the five states, but will eventually support the expansion of our MSO network into 27 states. We are in the process of completing the due diligence on this acquisition, with plans to close the transaction in the coming weeks,” Generex CEO Joe Moscato said in a press release.
Medisource Partners is currently contracted with more than 25 vendors to distribute implants and devices for spinal, hip, knee, foot, ankle, hand and wrist surgeries. The company distributes devices including biologics, durable medical equipment and soft goods, Generex said.
“MediSource Partners was founded in 2009 and designed to be unique amongst its competitors by operating as a service-focused, ‘one stop shop’ for the healthcare professionals it serves. With over 25,000 products in its catalogue, including thirteen lines dedicated to spine, Medisource prides itself on its ability to service everything from small private practices across several disciplines, to entire hospital systems. The large and broad-based inventory allows our client physicians to ‘customize’ their operating environment by selecting and implementing the hardware, biologics, soft goods and ancillary tools they feel most confident in and comfortable with. In addition, the ‘one stop shop’ model reduces the burden placed on support staff tasked with managing multiple reps from multiple vendors and shortens the distribution chain to reduce costs and potential redundancies. The success of this model is demonstrated in Medisource’s ability to offer this client-focused, low-impact service at a pricing matrix often below even standard GPO pricing, thus increasing client profitability and productivity,” Medisource CEO Travis Bird said in a prepared statement.