Water Street Healthcare Partners established Capstone Development Services as a new way to help healthcare companies expand their product development portfolios without increasing operating expenses. Capstone serves as a holding company that houses multiple development partnerships and one commercial pharmaceutical company, Long Grove Pharmaceuticals.

Capstone began with a core team initially tasked with supporting the growth and development of Celerity Pharmaceuticals, an injectables-focused R&D partnership with Baxter Healthcare. In 2015, a second development partnership was realized with Gage Development Company, focusing on topical formulations with Perrigo. Building on previous successes, Capstone established Long Grove Pharmaceuticals as their first independent pharmaceutical company with a robust portfolio of complex, high-barrier-to-entry medicines.

Capstone has expanded its current partnerships and formed new ones under the businesses Balmoral Medical, Orchard Medical Development, and Loop Therapeutics. Its team has grown to over 50 employees that now support the development of a range of healthcare products, including pharmaceuticals, drug-device combinations, and medical devices.