Flexpoint, Frazier, WindRose eye specialty pharmacies; Pharmacy tech needs drive HIG to back Outcomes One

PE investors are also seeing opportunities in pharmacy service businesses, particularly around technology and software. For Friday Focus, we’ll look at HIG Capital’s investment in one of these companies.

Specialty pharmacies with multi-state operations and licenses often supply a range of hard-to-access pharmaceuticals. These vendors also have negotiating leverage with various payers and manufacturers. This scale is attracting private equity, as it helps create durable margins and diverse revenue streams that can offset regulatory and reimbursement risks.

Predictable revenue from refills for chronic and complex conditions paired with the sector’s fragmented nature further adds to its appeal. I rounded up five deals in specialty pharmacy. Here are excerpts from two:

Flexpoint Ford announced in August that it closed the sale of ArtesRx, a behavioral healthcare pharmacy, to Linden Capital Partners. Based in Amherst, New York, ArtesRx serves patients with complex medication regimens for mental illness, substance use disorders and intellectual and developmental disabilities.

Flexpoint formed the business in 2023 alongside Dom Meffe, then a senior adviser for the PE firm. It created an in-house M&A engine for the company to pursue add-ons. Through M&A and organic growth, ArtesRx expanded from three pharmacies in one state to 16 pharmacies in 14 states and Washington, DC. One acquisition was of Parkview Health Services in 2023.

In May, WindRose Health Investors announced the sale of Altruix, a behavioral healthcare pharmacy, to Frazier Healthcare Partners. Operating out of Cockeysville, Maryland, Altruix serves patients with mental illness, substance use disorders and intellectual and developmental disabilities. It also provides high-touch pharmacy services, care coordination and access to specialty and limited-distribution drugs at 17 pharmacies across the Mid-Atlantic.

> “Over the course of our partnership, the company expanded its geographic footprint, deepened its omnichannel service capabilities, strengthened key pharma and payer partnerships and built a best-in-class leadership team,” said CJ Burnes, partner at WindRose, in a statement.

WindRose invested in the company in 2021 when it was called Terrapin Pharmacy. It also acquired and merged another specialty pharmacy, Ganse Apothecary, with the company in 2022. Terrapin Pharmacy rebranded as Altruix in 2023.

Beyond the completed deals in our listicle, more are coming. In July, a Warburg Pincus-led investor group agreed to acquire a controlling stake in Pantherx Rare from Nautic Partners, General Atlantic and the Vistria Group. Nautic Partners and Pantherx management will remain significant shareholders. The deal is expected to close in the coming months.

Most pharmacies, health plans and drug manufacturers still run on outdated legacy systems for workflow, billing and medication management. That, combined with labor shortages, is fueling demand for AI- and cloud-based software to modernize operations, dispensing, adherence and clinical interventions.

PE firms also are drawn to mature, scaled assets like these because established networks create multiple revenue streams and infrastructure that’s hard to displace once workflows are built around it. The attraction of pharma services and the impact of new technology were major topics in PE Hub’s Sector Spotlight on healthcare earlier this year.

As Eric Liu, global co-head of healthcare at EQT, told us: > “We like those sectors because they tend to be business-to-business sales. Our company is producing a product or service, and the customer is making an arm’s length decision as to whether they want to buy the product or service from us.”

Earlier this week, HIG Capital announced the acquisition of Outcomes One, a provider of clinical network services and pharmacy technology to US pharmacies, healthcare plans, pharmaceutical manufacturers and data partners. The Orlando, Florida-based company has a national network that encompasses approximately 85 percent of US pharmacies and supports pharmacist-delivered clinical interventions and medication adherence programs. In 2025, the company facilitated more than 10 million clinical interventions across 130 million covered lives.

Outcomes One’s integrated technology includes:

• Pharmacy management software:
• AI-enabled patient engagement and workflow automation tools:
• Data and analytics:

The platform supports prescription processing, dispensing, billing and inventory management for national and regional pharmacy chains, healthcare systems, specialty and long-term care providers and independent community pharmacies.

Well, that’s it for me. As always, if you have any questions, comments or want to chat, drop me an email at john.fischer@pei.group.

Scheduling note: There will be no US Wire on Monday due to the Labor Day holiday. The next one will be delivered on Tuesday. Nina Lindholm will be back with the Europe Wire on Monday. Cheers, John