• Capstone completed a due diligence project for a private equity firm considering an investment in a 340B pharmacy management company with exposure to the outpatient retail pharmacy space.


  • We focused on the risks and opportunities presented to the target company by the current and developing policy environment at both the federal and state level for covered entities eligible for the 340B program and contract pharmacies participating in the program.
  • During our engagement period, we engaged in conversations with 34 key stakeholder.  As part of our diligence, we also reviewed current and proposed legislation, regulation, white papers and academic studies related to the 340B program.  Finally, we analyzed state-by-state changes in oversight of the program and treatment of patient eligibility definitions.


  • We concluded the Target faces moderate policy-driven risks.  However, we believe the policy-driven risks identified may be mitigated – in part – by the policy-driven opportunities.  Furthermore, we believe many of the policy-driven risks are not near-term threats, and much of the interest in reforming the 340B program would not intentionally impact areas involving the Target’s revenue or business model.
- Capstone LLC -

Washington DC

-Capstone Research Limited-