Irving-based Biote Corp. announced that it will acquire Asteria Health, a privately held manufacturer of compounded bioidentical hormones, in a deal valued at $8.5 million.
Biote is a solutions provider in preventive health care via the delivery of personalized hormone optimization and therapeutic wellness.
“This strategic transaction expands and strengthens Biote’s capabilities by enabling the vertical integration of our manufacturing and providing direct control over our pharmacokinetic research efforts,” Biote CEO Terry Weber said in a statement.
“As we insource manufacturing, we anticipate improvement to our margin profile,” Weber added. “We also see a longer-term opportunity to leverage Asteria Health’s product development expertise to expand our offerings with therapeutic wellness products for Biote-certified practitioners.”
Earlier this month, Biote also announced that Robert Peterson has been named chief financial officer. He will lead the company’s finance operations, including accounting and controllership, financial planning and analysis, financial reporting, internal audit, tax, treasury and investor relations. (See more on the new CFO below.)
Adding pharmaceutical manufacturing capability
Asteria Health operates an FDA-registered 503B outsourcing facility in Birmingham, Alabama and currently supports Biote-certified practitioners and Biote-partnered clinics in numerous U.S. states.
Biote said that with this transaction, the company is strengthening its control over its supply chain while enhancing efficiency.
Also, Asteria Health provides Biote with expertise in 503B manufacturing, enabling longer-term development of innovative therapeutic wellness products. Biote said it plans to phase in manufacturing from Alabama-based Asteria Health.
Because Asteria Health is currently a supplier to Biote-certified practitioners, the company said there is expected to be minimal near-term revenue impact to Biote from the transaction.
“Asteria Health is proud of our longstanding relationship with Biote, an established leader in hormone replacement education and training. Both Asteria Health and Biote share an unwavering commitment to promoting patient health and evidence-based therapeutic wellness, and we are delighted to join Biote to further this mission,” Asteria Health President Bill Fixler, PharmD, said in a statement.
Fixler brings to Biote more than two decades of compounding and specialty pharmacy experience, with particular expertise in manufacturing compliance and product formulation, Biote said.
Closing on the transaction is anticipated in the first quarter of 2024.
New CFO brings financial planning and analysis expertise
Peterson, Biote’s new CFO, succeeds Samar Kamdar, who’s transitioning to pursue other opportunities, but will remain as an adviser to the company during a transition period. Biote said Kamdar’s transition is unrelated to its financial results or any disagreement with the company over its accounting principles, practices, or financial disclosures.
Peterson brings 15 years of health and wellness industry experience as well as public company experience to Biote, the company said.
Before joining Biote, Peterson was EVP and CFO of Virbac Corp., a subsidiary of Virbac S.A., a global veterinary pharmaceutical and wellness company. Additionally, he spent eight years at Fort Worth-based Alcon Laboratories/Novartis Eye Care, where he held roles of progressive responsibility, including global head of business planning and analysis as well as finance manager investor relations.
“Bob is a proven and highly accomplished finance executive, with a record of driving successful financial and operational performance across organizations. His extensive experience and deep expertise in financial planning and analysis will be instrumental as we execute on our strategic vision to become the leading provider of evidence-based therapeutic wellness solutions,” Weber said.
“I’m pleased to join Biote at this pivotal time as the company continues to expand into the growing market for therapeutic wellness. I look forward to working with Biote’s management team to maximize our growth opportunities, further our operating efficiencies and deliver on our financial objectives,” Peterson said in a statement.
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