Water Street Acquires Pharmaceutical Development Business From AAIPharma

Water Street has acquired the Pharmaceutical Development division from AAIPharma. Water Street has committed up to $75 million in equity financing to expand the business’ capabilities, with the goal of building it into a major provider of pharmaceutical development services.

The new company is named AAIPharma Services.

The company is expecting to serve more than 300 large pharmaceutical and biotechnology companies throughout North America. Its primary areas of expertise include analytical chemistry, formulation development, clinical packaging, oral drug delivery and contract manufacturing.

Tim Dugan, managing partner of Water Street, said: “We are pleased that Water Street continues to complete investments in sectors of health care that we have identified as attractive for growth. Over the past 30 years, the AAI Pharmaceutical Development business has consistently grown to achieve strong results. As a stand-alone entity, AAIPharma Services is much better positioned to focus on and expand its core business. We will leverage our team’s deep expertise and relationships in the pharmaceutical industry to build on its strong foundation through a combination of organic growth and strategic acquisitions.

Ultimately, our goal is to create greater long-term value for customers and the company by establishing AAIPharma Services as the leading provider of drug development services,” he added.