News

NewSpring Capital Makes Healthcare Investment in Putney, Inc.

RADNOR, PA and SHORT HILLS, NJ, October 4, 2011 - NewSpring Capital, a family of private equity funds providing growth and expansion capital to the Mid-Atlantic region, today announced that NewSpring Health Capital ("NewSpring Healthcare"), the dedicated healthcare fund of NewSpring Capital, led a $21 million Series C financing for Putney, Inc. NewSpring Healthcare provided $6 million of financing; the additional capital was provided by Safeguard Scientifics, Inc. and existing investors. Proceeds from the financing will be used for product development and additional marketing and operational needs.

Putney, Inc., based in Portland, ME, is a specialty pharmaceutical company focused on providing high quality, cost-effective generic medicines for pets. As a privately owned company with year-over-year growth of approximately 50%, Putney has established a strong market position to continue on its growth path. The company welcomed the opportunity to partner with NewSpring Capital, who brings significant experience in helping guide companies throughout their growth cycles.

Bruce Downey, Partner of NewSpring Healthcare, will join Putney's Board of Directors to provide operational guidance and strategic expertise. Downey is notable for his track record at Barr Pharmaceuticals, a human generics company. As President and CEO of Barr, Downey led annual revenue growth from $60 million to over $2.5 billion and the company became the fourth largest global generic drug company. In December 2008, Barr was acquired by Teva Pharmaceutical Industries, Ltd. for approximately $9 billion. "We're impressed by Putney's momentum, deep pipeline of products, and visionary leadership. I'm confident that our partnership with Putney management will help them in building the business into the industry leader in the pet generics sector," says Downey.

"Pets are part of our families, yet there is a significant unmet need when it comes to their care," says Jean Hoffman, Founder, President and CEO of Putney. "This financing round provides Putney with the capital we need to hire additional management talent, ramp up our product acquisition and licensing program, and transform Putney into a stronger R&D and commercial organization. In addition, NewSpring's network of industry contacts and financial and operational expertise will help drive Putney's vision forward to become the leading provider of high quality, bioequivalent and specialty drugs supporting the U.S. veterinary community."

Zev Scherl, NewSpring General Partner, also commented, "The veterinary generic market represents a terrific growth opportunity and we are pleased to back the leading team and company in this emerging segment."