PAI Pharma Bolsters US Sterile Injectable Capacity with Acquisition of Nivagen Pharmaceuticals
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The acquisition of Nivagen Pharmaceuticals by PAI Pharma marks a significant expansion of domestic manufacturing capabilities for critical sterile injectable medications, addressing ongoing drug shortages and strengthening the U.S. healthcare supply chain.
PAI Pharma, a portfolio company of Olympus Partners specializing in oral liquid medicines, announced on January 6, 2026, its acquisition of Nivagen Pharmaceuticals, Inc., a California-based pharmaceutical company. This strategic move aims to bolster PAI’s presence in the rapidly growing market for ready-to-use (RTU) sterile injectables and hospital-focused therapies.
Nivagen operates a newly constructed, state-of-the-art aseptic manufacturing facility in Sacramento, California, equipped to produce a range of sterile injectable products including IV bags, vials, prefilled syringes, and cartridges. The company’s robust pipeline includes over 20 RTU injectable products, complementing PAI’s existing portfolio of approximately 10 products in development and 4 currently on the market. This combined pipeline positions the newly integrated entity to better serve hospitals and health systems with domestically manufactured, high-quality therapies.
“PAI is a market leader in RTU oral liquid medicines, and that same focus on quality, reliability, and patient-centric design carries naturally into RTU injectables,” stated a company representative. Olympus Partners echoed this sentiment, with a partner noting, “We believe the combination of PAI’s leadership in RTU oral liquids and Nivagen’s injectable platform creates a unique business that is well-positioned to serve hospitals and healthcare providers with critical, high-quality medicines.”
Addressing Critical Drug Shortages
The acquisition comes at a crucial time, as the U.S. healthcare system continues to grapple with persistent shortages of aseptic sterile products, particularly RTU injectables. According to industry stakeholders, these shortages are driven by a complex interplay of factors, including supply chain vulnerabilities and limited domestic manufacturing capacity.
This transaction directly addresses the growing national focus on reshoring pharmaceutical production and reducing reliance on foreign supply chains. A senior official emphasized that ensuring consistent access to essential medicines requires sustained investment in U.S. manufacturing, skilled labor, and advanced production capabilities.
“This acquisition represents a meaningful investment in American pharmaceutical manufacturing at a time when domestic capacity, reliability, and readiness matter more than ever,” said the President of Nivagen Pharmaceuticals. Congressman Ami Bera, M.D. (CA-06) added, “This investment underscores the growing role Natomas and the Sacramento region are playing in strengthening America’s pharmaceutical manufacturing capacity. This state-of-the-art facility is helping expand access to ready-to-use sterile injectable medicines, support hospital systems, and improve patient care.”
Transaction Details and Advisors
PAI Pharma and Olympus Partners received advisory support from Bourne Partners, Kirkland & Ellis LLP, and KPMG LLP throughout the acquisition process.
About PAI Pharma
PAI Pharma is a U.S.-based pharmaceutical manufacturer with over five decades of experience specializing in oral liquid generic prescription medications. The company is committed to quality, affordability, and supply chain resilience, and plays a vital role in supporting the reliability of the U.S. pharmaceutical supply chain. PAI also distributes a portfolio of sterile injectable medications, expanding patient access to critical therapies.
About Olympus Partners
Founded in 1988, Olympus Partners is a private equity firm managing over $12 billion on behalf of corporate pension funds, endowment funds, and state-sponsored retirement programs. The firm focuses on providing equity capital for middle market management buyouts and growing companies across a broad range of industries, including healthcare.
About Nivagen Pharmaceuticals
Headquartered in Sacramento, California, Nivagen Pharmaceuticals, Inc., founded in 2009, is a specialty pharmaceutical company focused on developing and manufacturing ready-to-use sterile injectables and complex dosage forms with advanced aseptic manufacturing infrastructure.
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