Private equity firm Warburg Pincus is reported to be nearing a purchase of specialty pharmacy PANTHERx Rare in a transaction valued at more than $7 billion when debt is included, according to people familiar with the matter.
Sources say Warburg is partnering with the Abu Dhabi Investment Authority on the acquisition. While those familiar with the discussions indicated a deal could be completed in the near term, they also warned that nothing is final and the timetable could shift.
PITTSBURGH-BASED PANTHERx Rare provides medicines and patient support services targeted at rare and orphan diseases. The company is currently controlled by an investor group that includes private equity firm General Atlantic.
Previously, Centene acquired PANTHERx in 2020 and later sold the rare-disease specialty pharmacy in 2022 to a consortium that included General Atlantic, Nautic Partners and The Vistria Group. The sale was part of Centene’s effort to concentrate on its core health insurance operations. The price for that 2022 transaction was not disclosed.
Warburg Pincus manages more than $100 billion in assets and maintains multiple healthcare investments. Among its healthcare holdings cited are START Center for Cancer Research and Simtra BioPharma Solutions.
Context and deal status
People close to the situation have described the transaction value as exceeding $7 billion including debt, and they have identified the Abu Dhabi Investment Authority as a partner in the prospective buyout. At the same time, they emphasized that the negotiations have not reached a definitive close and that proposed timing may change.
Ownership history and strategic moves
PANTHERx Rare has changed hands several times over recent years. Centene’s acquisition in 2020 was followed by the company’s sale two years later to a private investor group led by firms including General Atlantic, Nautic Partners and The Vistria Group. Those moves were tied to Centene’s strategic decision to focus on its central health insurance business.
Warburg’s healthcare footprint
Warburg Pincus, with over $100 billion under management, has existing investments in the healthcare sector, including entities described as a cancer research provider and a drug manufacturer.
Summary
Warburg Pincus, in partnership with the Abu Dhabi Investment Authority, is reportedly close to buying PANTHERx Rare for more than $7 billion including debt. The deal remains uncompleted and timing is subject to change. PANTHERx is a Pittsburgh-based specialty pharmacy focused on rare and orphan diseases and is currently owned by an investor group that includes General Atlantic. Centene previously owned PANTHERx before selling it in 2022 as part of a move to concentrate on health insurance operations. Warburg manages over $100 billion and holds other healthcare investments.