Generex Biotechnology has signed a letter of intent (LOI) to acquire Medisource Partners, an FDA-registered medical and surgical products distributor.
Generex Biotechnology is an integrated healthcare holding company with end-to-end solutions for patient centric care from rapid diagnosis via delivery of personalized therapies.
Medisource distributes bone grafts and biologics from a range of surgical product manufacturers.
As per the terms of the deal, all the assets of Medisource including business operations, accounts receivable and inventory, contracts, and real estate, on a debt free basis, will be acquired for $1m worth of Generex stock, along with additional cash and stock, if certain sales and profit projections are achieved.
Established 10 years ago, Medisource Partners has contracts with more than 25 vendors to distribute implants and devices for spine, hips, knees, foot, ankle, hand, and wrist surgeries, across the US.
Additional product lines of Medisource include biologics such as blood, bone, tissue, and stem cells, durable medical equipment and soft goods. The company also supplies kits to process bone marrow aspirates and platelet rich plasma biologics during surgery.
Generex CEO Joe Moscato said: “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.”
Medisource CEO Travis Bird 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 (13) lines dedicated to spine, Medisource prides itself on its ability to service everything from small private practices across several disciplines, to entire hospital systems.”
Recently, Generex has signed an LOI to acquire Pantheon Medical, which began operations in 2014 and started selling All-in-one, an integrated kit that includes plates, screws, and tools required for orthopedic surgeons and podiatrists conducting foot and ankle surgeries.