PharMEDium Files for IPO

The underwriters for the offering are Credit Suisse, JPMorgan, Morgan Stanley, Merrill Lynch, Goldman Sachs and Baird.

This company is the leading national provider of outsourced compounded sterile preparations (CSPs) to acute care hospitals in the United States. Sterile compounding is the process by which pharmaceuticals are combined or mixed to create a drug dosage therapy customized to meet specific hospital and physician clinical needs in formulations that are not otherwise commercially available.

Its CSPs offer a strong value proposition to acute care hospitals by helping to address the growing need for greater operational efficiency, enhanced patient safety and improved clinical outcomes. PharMEDium sources sterile drugs, diluents and containers only from manufacturers registered with the U.S. Food and Drug Administration (FDA) and the company compounds only with FDA-approved or allowed drugs in finished dosage form and use only FDA-approved diluents and FDA-cleared containers.

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Utilizing these raw material components, the company prepares and provides a broad range of over 2,000 customized stock keeping units to meet the individual requirements of its approximately 3,000 acute care hospital customers located across all 50 states.

In the filing, the company detailed its finances as follows:

Throughout our history, we have experienced strong growth, which has accelerated in recent years, as evidenced by our compound annual growth rates, or CAGR, in revenue and Adjusted EBITDA of 35% and 55%, respectively, from 2012 through 2014. For the full year 2014, we generated revenue of $374.1 million, net income of $10.5 million and Adjusted EBITDA of $96.6 million, on a pro forma basis representing the sum of the results for the Predecessor and Successor periods. For the six months ended June 30, 2015, we generated revenue of $209.5 million, net income of $9.3 million and Adjusted EBITDA of $54.9 million. For a reconciliation of net income (loss) to Adjusted EBITDA.

According to filing, PharMEDium detailed the use of proceeds as follows:

The selling stockholder will receive all of the net proceeds from the sale of shares of our common stock offered pursuant to this prospectus. We will not receive any proceeds from the sale of the shares being sold in this offering. The selling stockholder will bear any underwriting commissions and discounts attributable to its sale of our common stock, and we will bear the remaining expenses.

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