Pharmagen Partners with Bagel Boy Equity Group II, LLC and prepares to Launch its Industry Consolidation Strategy

SILVER SPRING, Md., Dec. 17, 2013

"We have been looking at this space for the past year and believe Pharmagen has the right platform for the overall success of the plan," says Richard A. Wolpow, managing partner of Bagel Boy Equity Group II LLC, a private family office he controls.  As a component to the deal Bagel Boy Equity Group will lead a Bridge Financing that will help kick-off the plan that has been in development for the past months including a detailed capital restructure plan.    

The market is made of a lot of quality smaller secondary wholesale companies and compounding laboratories that are all running into similar problems; regulations are getting tighter, supply chain is shrinking along with revenues and profits.  Without change, many of these companies may not survive and/or have an exit strategy in the future.   "Pharmagen has made significant investments across the board; from its focus to become a  cGMP complaint laboratory, industry changing IT platform, and drug productions models, the Company is poised to become a best-in-class provider" continued Wolpow.

"This is all very exciting stuff; working together we created an acquisition class of preferred stock that represents a non-dilutable interest in the Company.  It provides offerings of cash and stock, executive management positions, performance bonuses and seats on the Board of Directors.  There are a lot of talented competitors out there that we are confident understand what is going on in this market and that change is needed to adapt to the times.  We have already identified a handful of acquisition targets that would like to join us on this journey," Wolpow continued.

"We are really fortunate to have Richard on the team. It validates all the work we've been doing behind the scenes for the last two years to build a strong foundation for the future.  We have a lot of work ahead of us, but are very exciting about what 2014 will bring," said Mackie A. Barch, CEO of Pharmagen. 

About Pharmagen

Pharmagen, Inc. ("Pharmagen"), and wholly owned subsidiaries and operating divisions Pharmagen Laboratories, Inc., Pharmagen Distribution, LLC and Pharmagen Nutraceuticals, Inc. offers innovative solutions to the nations sterile pharmaceutical crisis.  With a multi-solution approach, Pharmagen is helping to meet the demand of the health provider market through independent wholesale, compounding, and IT solutions.  Nationally focused, Pharmagen is a distributor of specialty drugs, compounding and admix pharmacy and producer of over-the-counter ("OTC") branded multivitamins.  Pharmagen currently functions as a just-in-time source of supply for hospitals for those products that are hard-to-find.