Diplomat Completes Acquisition of TNH Advanced Specialty Pharmacy
FLINT, Mich. – June 1, 2016 – The nation’s largest independent specialty pharmacy strengthens its services portfolio with TNH’s business presence in California and Texas.
Diplomat Pharmacy, Inc. (NYSE: DPLO), announced today it has completed the acquisition of Valley Campus Pharmacy, Inc., doing business as TNH Advanced Specialty Pharmacy (“TNH”), a leading specialty pharmacy that provides individualized patient care, based in Van Nuys, California.
Diplomat and TNH are dedicated to customizing services to meet the unique needs of patients with complex chronic diseases. Phil Hagerman, CEO and chairman of Diplomat commented, “The combined resources of both companies opens new sales synergies and makes our services stronger in the evolving specialty pharmacy market.” Hagerman continued, “TNH’s established physician referral presence in California and Texas strengthens Diplomat’s footprint in key geographic markets. Further, the recent purchase of a licensed Texas facility to enable brick-and-mortar presence will allow us to open the door to service the state’s 3.7 million Medicaid patients. As we integrate TNH into our family of companies, we will be leveraging their expertise, while remaining focused on providing care one patient at a time.”
Avo Minasyan, CEO of TNH, commented, “Diplomat is a family-grown business guided by the philosophy, ‘Take good care of the patients and the rest falls into place.’ We share that same philosophy, and are committed to maintaining the highest standards of customer care in the industry.” Minasyan continued, “TNH was founded based on the need to improve industry standards through technology for advanced specialty pharmacy services. Together, we will continue the dedication to high-touch management programs to enhance the entire care experience,” said Minasyan.
Under the terms of the agreement, Diplomat is paying TNH $65 million cash and $10 million in Diplomat common stock. In 2015, TNH generated approximately $400 million in revenue. The transaction is expected to be accretive to Diplomat’s earnings per share in 2016.
To learn more about Diplomat, visit www.diplomat.is.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance. The forward-looking statements contained in this press release are based on management’s good-faith belief and reasonable judgment based on current information. These risks and uncertainties include: the ability of the parties to consummate the acquisition on the terms set forth in the purchase agreement in a timely manner or at all; the ability to obtain governmental approvals for the acquisition; delays in completing the transaction or delays or difficulties in integrating the combined businesses; general economic conditions in the regions and industries in which the parties operate; and the ability to achieve cost savings and operating synergies and the timing thereof. The foregoing transaction risks should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including in “Risk Factors” in Diplomat’s Annual Report on Form 10-K for the year ended December 31, 2015 and in subsequent reports filed with or furnished to the Securities and Exchange Commission. These statements are qualified by important risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those forecasted or indicated by such forward-looking statements. For a discussion of such risks and uncertainties, you should review Diplomat’s filings with the Securities and Exchange Commission, including “Risk Factors” in Diplomat’s Annual Report on Form 10-K for the year ended December 31, 2015 and in subsequent reports filed with or furnished to the Securities and Exchange Commission. Except as may be required by any applicable laws, Diplomat assumes no obligation to publicly update such forward-looking statements, which are made as of the date hereof or the earlier date specified herein, whether as a result of new information, future developments or otherwise.
Diplomat (NYSE: DPLO) serves patients and physicians in all 50 states. Headquartered in Flint, Michigan, the company focuses on medication management programs for people with complex chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialized infusion therapy and many other serious or long-term conditions. Diplomat opened its doors in 1975 as a neighborhood pharmacy with one essential tenet: “Take good care of patients, and the rest falls into place.” Today, that tradition continues—always focused on improving patient care and clinical adherence. For more information, visit www.diplomat.is. Follow us on Twitter and LinkedIn and like us on Facebook.
About TNH Advanced Specialty Pharmacy
TNH was established in 2009, bringing technology to improve industry standards for advanced specialty pharmacy services. TNH serves patients and physicians in 34 states and U.S. territories with innovative solutions to manage complex conditions, including oncology, hepatitis, rheumatoid arthritis, dermatology and other specialty areas. TNH earned a place on Inc. Magazine’s list of 500 fastest-growing private companies in 2013, 2014 and 2015 based on its commitment to providing customer service and client satisfaction through comprehensive continuity of care. For more information, visit www.tnhpharmacy.com.
Bob East, Westwicke Partners
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Jenny Cretu, Diplomat
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