PE group Water Street sets up contract pharma services unit aimed at generic drugmakers

Water Street Healthcare Partners has set up a contract services firm to make products for an unnamed generic drugmaker.

The private equity group’s new services unit – Capstone Development Solutions – will develop a range of predefined “designated generic products” according to spokeswoman Kelly Zitlow.

She told Outsourcing-pharma.com that: “By outsourcing designated products to Capstone through this partnership, the health care company can maximize the full potential of its internal resources on other high-priority products, and ultimately bring more health care products to market, more quickly and more efficiently.”

Zitlow added that: “When the products receive regulatory approval, the health care company will repurchase them from Capstone at a pre-defined price.”

Capstone will be led by pharmaceutical industry R&D veteran Dan Robins.

News of the new services unit comes less than six months after Water Street invested in US generic injectables contractor Custopharm.

Water Street partner Al Heller signaled the private equity group’s intention to seek additional customers for Capstone, commenting that: “We created this program as a new model to enable companies to bring more products to market, more quickly and efficiently.

He added that: “We look forward to working with more corporations to customize solutions through Capstone that advance their long-term goals.”