What we say about Excellere Partners
Portfolio : Advanced Infusion Solutions
Advanced Infusion Services (“AIS”) is a compliance focused provider of patient-specific medications for chronic pain patients with intrathecal pumps and other chronic and acute conditions. Intrathecal drug delivery is a method of providing customized medications directly to a patient’s spinal cord through an implanted pain pump that is surgically placed under the skin of a patient’s abdomen. Founded in 1998, AIS operates out of its headquarters in Clinton, MS and provides services in more than 30 states.
Top Down Investment Thesis
Excellere’s investment in AIS is based upon (i) the non-discretionary need for intrathecal drug delivery for patients with chronic pain conditions that cannot be improved from further surgeries or oral pain medications, (ii) the highly recurring revenue model of intrathecal pain management, as the estimated 150,000 patients using this treatment receive 4 to 6 pain pump refills annually, and (iii) the highly-fragmented nature of the industry.
The U.S. chronic pain industry, at over $100 billion in annual spending, is characterized by numerous constituents trying to serve the 76+ million Americans suffering from pain linked to diseases and syndromes such as obesity, cancer, diabetes, arthritis, HIV-AIDS, failed surgeries, cerebral palsy, multiple sclerosis and countless other conditions. The industry is expected to continue growing due to (i) a rapidly growing geriatric population – “baby boomers” currently account for 30%+ of the U.S. population, (ii) continued and growing U.S. obesity, which contributes to chronic pain as body structures support heavier weights over time and wear down, (iii) increasing recognition of the therapeutic benefits of effective pain management (specifically, versusoral pain medications) and (iv) expected growth in surgical procedures (29% from 2010 to 2020).
Buy and Build Strategy
The intrathecal pain pump market is composed of approximately150,000 patients, and is expanding due to the increase in chronic pain patients as well as the recognition of intrathecal pumps as a safe and cost effective treatment methodology for patients that have exhausted other forms of therapy (e.g. continual oral medications and multiple surgeries). AIS’s platform is well positioned to grow both organically and through selective acquisitions due to its (i) compliance-centric model (including USP 797), (ii) growing and recurring patient base, (iii) diversified referral network and (iv) proven growth profile.
To the extent you are interested in learning more about AIS, please contact Rob Martin at (303) 765-2407, Ryan Glaws at (303) 765-2404 or Bryan Armstrong at (303) 765-2401.
3033 East First Avenue, Suite #700 | Denver, CO 80206 | 303.765.2400 | 303.765.2411 Fax