Case Studies
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PDS Heart - West Palm Beach, FL
Company Overview
PDSHeart provided physician-prescribed remote and ambulatory care monitoring of non-symptomatic, symptomatic and post surgical cardiac patients via landline, cellular telephone and the Internet. The Company was founded by Sean Heyniger and two other former senior executives from PSS World Medical, one of the largest public medical supply companies in the country.
BPV's Role
PDSHeart was introduced to BPV in 2003 by a board member of the Company who the principals of BPV had known for several years through their health care industry network. BPV led a $5 million growth equity investment to allow PDS to fund the growth of its sales force as it expanded nationally and to fund the purchase of additional monitoring devices. Over the course of several years, BPV helped PDS recruit an outstanding CFO/COO for the business, made introductions to key managed care companies and helped assess several acquisition opportunities. BPV also helped the founders negotiate the structure and terms of the eventual sale of the business.
Dick Brandewie served on the Board of Directors of PDSHeart.
Company Situation
PDSHeart was acquired by larger industry competitor Cardionet (Nasdaq: BEAT) in March of 2007, generating substantial returns for the founders and investors, and the combined companies undertook an IPO in 2008. BPV continues to enjoy a strong relationship with Sean Heyniger and his team who recently founded a second company, Watermark Medical (www.watermarkmedical.com).
Cbeyond Communications - Atlanta, GA
Company Overview
Cbeyond provides communications and managed services to small business customers throughout the
BPV's Role
BPV was introduced to Cbeyond in 2004 by a BPV Limited Partner who served on the board of the Company. Cbeyond’s founder and CEO, Jim Geiger, had an impressive track record in the industry and had successfully navigated the Company through the telecom downturn in 2001-2002. BPV and a group of co-investors provided a final round of expansion capital to Cbeyond in December 2004 that allowed the Company to continue its expansion into new markets and reach positive cash flow. BPV introduced key communications industry veterans from its network to the Company and also facilitated a strong relationship between the Company and the key Raymond James industry Research Analyst. BPV also assisted in the underwriter selection process and the preparation of the “road show” presentation for the Company’s initial public offering.
Paul Johan represented BPV in our investment at Cbeyond.
Company Situation
Cbeyond completed a successful IPO in November 2005 and continues to demonstrate impressive revenue growth and profitability. BPV distributed its shares to its Limited Partners at a substantial profit in 2006. BPV maintains a strong relationship with Jim Geiger, who was the keynote speaker at the 2009 BPV Annual Meeting.
QOL Medical - Vero Beach, FL
Company Overview
QOL Medical is a specialty pharmaceutical company that focuses on acquiring FDA-approved drugs that for strategic reasons are no longer being marketed effectively and have potential new indications. The Company’s founders, Trevor Blake and Edwin Hernandez, were formerly executives at Orphan Medical and saw attractive acquisition opportunities in the market as large pharmaceutical companies focused more on “blockbuster” drugs.
BPV's Role
The QOL Medical founders first approached BPV in 2002, but at the time the Company was too early stage for BPV. We kept in touch, and in 2005, QOL identified an opportunity to acquire a portfolio of three drugs from Questcor Pharmaceuticals (Nasdaq: QCOR), including Nascobal, a patent pending B-12 nasal spray that offered an alternative to intramuscular injections for treating B-12 deficiency. BPV co-led a $9 million investment in October of 2005 to help fund the acquisition of Nascobal and two other drugs and to allow QOL to begin a remarketing of the Nascobal product. In addition to our capital for the acquisition, we helped lead the financial due diligence and valuation analysis for the deal. Later we helped build a bank financing model and refinance the Company’s debt, introduced a market research firm to the Company that became a key strategic relationship, devised a new compensation structure for senior management and advised the founders on the structure and terms for the successful sale of QOL’s largest product.
Drew Graham serves on the board of QOL Medical.
Company Situation
QOL sold its Nascobal drug to Par Pharmaceutical (NYSE: PRX) in March 2009, resulting in a substantial gain for the founders and investors. QOL continues to pursue acquisitions and market other drugs, including Sucraid, the only approved treatment for congenital sucrase-isomaltase deficiency, and Ethamolin, the only FDA-approved schlerotherapy treatment for patients with esophageal varices.
Matrix Medical Network - Brooklyn, NY
Company Overview
Matrix Medical Network was founded in 2001 to manage high-risk members in the nursing home, skilled nursing facility, and home settings. Matrix has grown to 15 states of operation and has contracts with over 20 health plans. The Company’s physicians and nurse practitioners service over 500 nursing homes and skilled nursing facilities throughout the country with significant operations in the Southeast. Matrix was founded by Michael Quilty, a veteran of the disease management industry who previously held senior positions at Integrated Health Networks and Pfizer Health Solutions.
BPV's Role
BPV was originally introduced to Matrix in 2004 by a BPV Limited Partner who served on the Board of the Company. We built a relationship with Mike and his team over the next three years, and in February 2007 BPV led a $3.5 million growth financing to allow Matrix to ramp up its hiring of physicians and expand its geographic scope. Since that time, BPV has helped Matrix develop the business plan for a new related line of business, advised on the structure and terms of an acquisition and introduced a new investor to the Company for an additional round of financing in February 2009.
Dick Brandewie serves on the Board of Directors of Matrix Medical Network.
Company Situation
Matrix has more than doubled its revenue since BPV’s investment and continues to experience rapid growth in revenue and profitability, both in its core area of medical management services and in its newer business line of revenue management support for large health plans. The Company is also rapidly expanding into end-of-life care management services after its acquisition of Enclara Health in early 2009.
FSV Payment Systems – Jacksonville, FL/Houston, TX
Company Overview
FSV Payment Systems is a full-service provider of stored value products and processing services to large companies and their employees. Founded in 1999 with offices in
BPV's Role
FSV was introduced to BPV by friends from a Northeastern venture capital firm, and the Company was also familiar to us through a relationship that a Raymond James investment banker had built with Jon Palmer. In February, 2009 we led a $6 million growth equity investment to allow the Company to continue the rapid expansion of its operations as it approached profitability. We have helped the Company refine its market strategy and growth plan and have assisted Jon Palmer in identifying and interviewing key new employees as he continues to build the management team.
Paul Johan serves on the Board of Directors of FSV Payment Systems.
Company Situation
FSV has experienced rapid growth in the payroll and general purpose reloadable verticals since our investment. Despite a difficult economic environment, FSV is meeting its growth plan, has achieved profitability and is utilizing the capital raised in early 2009 to expand its capabilities and enhance its systems. The Company has also substantially expanded its management team in anticipation of future growth opportunities.