MEMPHIS, Tenn. – Accredo Health Inc., a marketer of specialized pharmaceutical products for patients with costly chronic diseases, went public April 15 offering 3 million shares of common stock. The stock priced at $16, in the middle of the company’s $15 to $17 filing range.
Welsh, Carson, Anderson & Stowe VII was the only venture backer. There were no selling shareholders.
The initial public offering, underwritten by Hambrecht & Quist, NationsBanc Montgomery Securities L.L.C. and SunTrust Equitable Securities, left 8.6 million shares outstanding.
Accredo Health, formerly known as Nova Factor, was founded in 1985. The company provides biotechnology drugs and service contracts for customers with chronic conditions such as Gaucher disease, hemophilia, multiple sclerosis, growth hormone-related disorders and Crohn’s disease. Genzyme Corp., Biogen Inc., Genentech Inc. and Centocor Inc. are examples of biotechnology drug manufacturers who are Accredo partners.
Accredo has never paid dividends on its common stock. Proceeds from the IPO, worth $48 million, will be used for general corporate purposes.
Andrew Paul of Welsh Carson became a director of Accredo in 1996, followed a year later by Kenneth Mekus and Partick Welsh.
Accredo Health – Selected Financial
(in thousands, except per share data )
May 24, 1996
through June 30, 1996 Years Ended June 30, Six Months Ended December 31,
Total revenue 7,293 115,209 180,958 85,586 120,026
Net income (loss) -569 -2,150 -1,425 429 1,863
Net income (loss) per share
-739 -4,193 -618 -592 842