Medical distributor snaps up subsidiary of AIM-listed pharma company

Leeds-based medical and pharmaceutical distributor HealthNet Homecare has acquired a subsidiary of Quantum Pharma, an AIM-listed manufacturer,  in a £1.75m deal.

Total Medication Management Services, which trades as Biodose Services, has been bought by the company to grow its homecare services business.

Biodose is based in Featherstone and provides advanced medication management services. In the year to 31 January 2017 Biodose Services made £22.4m in revenues and recorded an adjusted EBITDA loss of £0.1m, said its £95m, Newcastle-based parent company Quantum.

HealthNet itself is a subsidiary of Redditch-based Lexon which started as a retail pharmacy 30 years ago before moving into wholesale distribution.

In addition to its 54 retail pharmacies the group has three distribution sites in the UK, based in Redditch, Leeds and Durham, from where they supply more than 1,500 independent pharmacies.

HealthNet was incorporated in 2015 and specialises in the delivery of complex medication to patients in the home, as well as supporting pharmaceutical companies to distribute medicines.

Kerry Hinton, chief executive of HealthNet, said: “This provides us with an exciting opportunity to combine the expertise and experience of the management and operational teams at HealthNet and Biodose Services.

“We believe that this combined operation will allow us to accelerate the growth of our homecare services, whilst maintaining excellent patient and customer service. With the support of the Lexon Group, we will also be able to invest in new technology and services to further improve our offering for patients and customers.”

Nick Dawson, corporate partner at Irwin Mitchell in Birmingham along with Nick Little, advised Lexon (UK) on the transaction. Dawson said: “We are delighted to have advised on this important acquisition for HealthNet. Both businesses complement each other very well and the deal provides an exciting opportunity for future growth.”

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