Petra Capital and HealthQuest Invest in VirMedica
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Petra Capital and HealthQuest Invest in VirMedica

vermedica nf1VirMedica, a provider of specialty pharmaceutical technology services, has acquired the assets of TransEngen.  TransEngen’s core technology platform, called TIER4, automates the benefits verification process for specialty pharmaceutical products and is currently deployed by several of the world’s largest pharmaceutical companies.

The $15 million dollar acquisition was financed by Petra Capital Partners and HealthQuest Capital.  Following the close of the financing, David Fitzgerald (Partner at Petra Capital), Dr. Garheng Kong (Managing Partner at HealthQuest), David Golding (former President of CVS Specialty Pharmacy) and Dean Erhardt (CEO at D2 Pharma Consulting) have joined VirMedica’s Board of Directors.

david fitzgerald nf1Petra Capital Partners believes VirMedica’s value proposition will deliver significant and rapid revenue growth.  “By acquiring TransEngen’s TIER4 technology platform, VirMedica now offers the industry’s leading single-source solution that automates the benefits investigation process, enables dynamic, customized case management and provides the backbone for robust specialty pharmacy operations,” said Mr. Fitzgerald.

Petra provides subordinated debt and preferred stock to companies for expansion, acquisition, buyout, refinancing or recapitalization.  The firm invests up to $20 million in companies that have a minimum of $10 million in revenue and positive EBITDA.  Sectors of interest include business services, healthcare and information technology services companies.  The firm is based in Nashville (www.petracapital.com).

“With this acquisition, VirMedica has acquired the industry’s clear leader in electronic benefits verifications,” said Mark Barnes, Chairman and Chief Executive Officer of VirMedica.  “The benefits verification process is a critical step in nearly all Patient Access Services Programs and is typically completed over a period of days by a manufacturer’s hub services company via phone, fax and manual workflows.  By automating this process, we help patients get on therapy faster, improve customer service to providers and lower overall program support costs for manufacturers.”

HealthQuest Capital makes investments in healthcare companies that are active in improving both patient outcomes and healthcare economics. Sectors of interest include medical devices, diagnostics, patient care products, consumer health/OTC and healthcare IT.  The firm is headquartered in Menlo Park with additional offices in Southern California, Florida, and Georgia (www.healthquestcapital.com).

Greene Holcomb Fisher (www.ghf.net) acted as the exclusive financial advisor to VirMedica and assisted in raising capital to finance the transaction.

VirMedica is headquartered in Philadelphia (www.VirMedica.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-20-15

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