Biote Corp. (NASDAQ: BTMD), a preventive health care solutions provider based in Irving, TX, has officially entered into a definitive agreement to acquire F.H. Investments, Inc., operating as Asteria Health. Asteria Health, a privately held 503B manufacturer specializing in compounded bioidentical hormones, runs an FDA-registered facility in Birmingham, Alabama, and serves Biote-certified practitioners and partnered clinics across multiple U.S. states.
The acquisition aims to enhance Biote's control over its supply chain and improve overall efficiency. Asteria Health's expertise in 503B manufacturing is expected to contribute to the development of innovative therapeutic wellness products. Biote plans to gradually integrate manufacturing from Asteria Health, with minimal near-term revenue impact expected due to Asteria Health's current role as a supplier to Biote-certified practitioners.
Terry Weber, Biote Chief Executive Officer, expressed satisfaction with the agreement, emphasizing the expansion and strengthening of Biote's capabilities through vertical integration of manufacturing. Weber anticipates improvements to the company's margin profile and envisions leveraging Asteria Health's product development expertise for expanding offerings to Biote-certified practitioners.
Bill Fixler, PharmD, President of Asteria Health, highlighted the longstanding relationship between Asteria Health and Biote, both dedicated to promoting patient health and evidence-based therapeutic wellness. Dr. Fixler, with over two decades of compounding and specialty pharmacy experience, brings valuable expertise in manufacturing compliance and product formulation to Biote.
The acquisition's terms include a purchase price of $8.5 million, subject to customary adjustments. Asteria Health shareholders may receive an additional $500,000 if specific production metrics are achieved by April 1, 2024. Biote plans to finance the transaction using cash from its balance sheet. The closing of the acquisition is subject to customary conditions, with the anticipated completion in the first quarter of 2024. Truist Securities served as the financial advisor to Biote.
