Indianapolis-based Wellfount Corp. has secured $15 million in funding. Chief Executive Officer Eric Orme says the infusion from New York-based Deerfield Management Co. will bolster the pharmacy services provider's efforts to enter new markets. March 26, 2014
NEW YORK – Deerfield Management Company announced today that it has entered into an agreement to provide Wellfount Corporation with $15.0 million in funding. With these amounts, Wellfount will possess sufficient working capital to continue to expand the portfolio of long term care facilities in which its innovative pharmacy solution is implemented.
Wellfount currently provides medications to over 3,000 residents in eight states, using a safe, cost effective approach that combines technologically sophisticated remote dispensing units with high touch, on-site customer service.
Under the terms of the agreement, Deerfield funded the entire $15 million upon closing. Interest on the balance accrues at 10.75 percent per annum and must be repaid within five years. Deerfield also received warrants to purchase shares of Series B Preferred Stock in the company.
“We believe that Wellfount's unique approach to the delivery of long term care pharmacy services enables the company to improve service levels, enhance patient safety and reduce costs in a very differentiated way,” commented Leslie Henshaw, Partner at Deerfield Management. “Our objective with this funding is to strengthen Wellfount's financial position with flexible, minimally dilutive capital that will allow it to meet growing client demand for implementing its solution in new facilities.”
“Wellfount has recently doubled its business and added a national footprint,” said Eric Orme, CEO and President of Wellfount. “The Deerfield team demonstrated a very broad understanding of both the market and our specific needs during this high growth period. They worked closely with us to create a financing platform that allows us to execute as we enter new geographic markets. We have found the right partner in Deerfield to help manage both the short and long term success of Wellfount.”
About Wellfount Corp.
Wellfount is a pioneering institutional pharmacy providing pharmaceutical products and services to both local and national long-term care facilities that house an increasing number of the nation's aging population. The company aims to address the shortcomings of traditional LTC pharmacy services through its innovative TED Rx pharmacy service. Wellfount's TED Rx system enables on-demand patient-specific medication dispensing at the point of care, which reduces drug waste and helps eliminate human error. Wellfount is headquartered in Indianapolis, IN.
About Deerfield Management Company
Deerfield is an investment management firm, committed to advancing healthcare through investment, information and philanthropy. For more information about Deerfield, please visit www.deerfield.com
Source: Deerfield Management Co.