September 8, 2021 – Premier Inc. (Charlotte, NC) and 11 leading health systems acquired a minority stake in Exela Holdings, Inc., the holding company of Exela Pharma Sciences, LLC (Lenoir, NC), to secure vital supply of pharmaceutical products and support domestic production.
Under the arrangement, participating Premier member health systems are expected to have uninterrupted supply of 19 pharmaceutical products, including several generic injectables that frequently appear on the U.S. Food and Drug Administration’s (FDA’s) drug shortage list, as well as 503B pharmaceutical products made by Exela.
Premier members participating in the initial investment include:
- Baystate Health (Springfield, MA)
- Genesis Health System (Davenport, IA)
- Henry Ford Health System (Detroit, MI)
- McLaren Health Care (Grand Blanc, MI)
- Memorial Healthcare System (Hollywood, Florida)
- OSF HealthCare (Peoria, IL)
- Riverside Health System (Newport News, VA)
- Saint Francis Health System (Tulsa, OK)
- Texas Health Resources (Arlington, TX)
- Universal Health Services, Inc. (King of Prussia, PA)
Premier says that Exela’s manufacturing capacity provides participating Premier members with a unique opportunity to bolster the supply of critical products and support domestic manufacturing infrastructure.
Exela primarily sources active pharmaceutical ingredients (APIs) from the U.S. and Europe, and manufactures finished-dose products in its recently expanded state-of-the-art U.S. manufacturing facility in Lenoir, North Carolina.
The financial terms of the transaction with Exela were not disclosed.
The participating health systems signed multi-year commitments to purchase a portion of their pharmaceutical products from Exela through Premier’s group purchasing organization.