Hormone treatment firm Biote (BTMD) going public in $737m IPO
16:56, 14 December 2021
Biote Holdings is merging with blank-cheque firm Haymaker Acquisition in a $737m (£556.8m) transaction to take it public, the companies have announced.
Haymaker Acquisition stock rose 0.70% to $10.70 from $10 per share after the market open but fell to $9.91 per share by noon EDT (UTC-5). Haymaker Acquisition trades over the Nasdaq exchange under the ticker HYACU.
Irving, Texas-based Biote is a hormone pill manufacturing company offering a platform for clinics to optimise treatment of age-related hormone treatments. The transaction is expected to close in the first half of 2022. The combined entity will trade over the Nasdaq exchange under the ticker BTMD.
“Biote is committed to educating and empowering providers to effectively treat patients and help them understand the critical role that hormones play in healthy ageing,” said Biote CEO Terry Weber in a prepared release.
“We welcome Haymaker as partners and look forward to the role our status as a public company will play in increasing access to, and awareness of, our leading hormone therapy practice-building business,” she said.
Transaction structure
Upon closing, Biote will have $195m (£147.4m) in cash and a credit facility provided by Truist Securities. Jefferies and Truist Securities are acting as financial advisors for BioTe Holdings. Citigroup and William Blair are acting as financial advisors to Haymaker.
Cooley is acting as legal advisor to Biote. DLA Piper and Ellenoff Grossman and Schole are acting as legal advisors to Haymaker.
Biote reported $116m in revenue for the full-year 2020, noted Weber in a conference call following the transaction’s announcement.
Age-related hormonal therapy
“Women experience a 67% reduction in oestradiol between the mid-forties and mid-fifties. Over 47 million women in the US are affected by menopausal symptoms, yet only 28% undergo treatment,” Weber said on the call.
“Men, on the other hand, experience a 44% reduction in testosterone between the ages of 30 and 74. This condition affects 40% of men over 45, yet only 10 to 12% are receiving testosterone therapy.”
Biote manufactures soy and yam-based oestradiol and testosterone pellets, which it sells to doctors and clinics. Biote therapy is not covered by insurance and costs roughly $4 per day for women and $4.50 per day for men. The majority of Biote patients are between the ages of 45 and 56.
Biote currently has 4,700 client practitioners in 2,800 clinics in the United States. The average Biote clinic generates $100,000 in annual profit, Weber added on the call, with the top 100 of the 2,800 partner clinics reporting nearly $500,000 in annual profit.
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