FLINT, Mich., April 28, 2016 /PRNewswire/ — Click here for supplemental information regarding the transaction. Diplomat Pharmacy, Inc. (NYSE: DPLO), the nation’s largest independent specialty pharmacy, announced today that it has signed a definitive agreement to acquire 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. In 2015, TNH generated approximately $400 million in revenue. The transaction is expected to close in the next 30 to 60 days and is expected to be accretive to Diplomat’s earnings per share in 2016.
Phil Hagerman, CEO and chairman of Diplomat, commented, “We are very excited to expand Diplomat’s specialty services with the acquisition of TNH. This partnership opens new prescriber relationships and growth opportunities with TNH’s market concentration in California and Texas. Further, Diplomat recently added a licensed Texas facility to enable brick and mortar presence for the State of Texas Medicaid program. According to a 2014 report by the American Association of Medicaid Pharmacy Administrators, Texas Medicaid serves 3.7 million patients. Our combined resources will make us stronger and more unique within the specialty services industry.” Mr. Hagerman continued, “The robust pipeline calls for the foundation our companies were built upon—a relentless dedication to our patients, coupled with a flexible and nimble infrastructure to develop innovative programs that optimize therapy management.”
Avo Minasyan, CEO of TNH, commented, “TNH was founded based on the need to improve industry standards through technology for advanced specialty pharmacy services”. TNH enhances continuity of care through its proprietary portal platform TNH Live. Phil Hagerman continued, “TNH Live gives Diplomat instant access to sales and patient data to offer partners actionable insights. This technology creates a unique platform for patient management, education and live communication that results in an accessible flow of data for prescribers, pharmaceutical manufacturers and patients.”
“We are proud and excited to join the Diplomat family of companies. Diplomat’s dedication to high-touch medication management programs for patients with complex chronic diseases echo our own. Together, we will work with patients, prescribers, and pharmaceutical manufacturers to enhance the entire care experience,” said Mr. Minasyan.
Diplomat plans to fund the cash component of the purchase price with cash on hand along with use of its existing credit facility. Honigman Miller Schwartz and Cohn LLP are acting as legal advisors to Diplomat. Manatt, Phelps & Phillips, LLP are advising TNH. Lincoln International acted as TNH’s sell-side financial advisor.
To learn more about Diplomat, visit www.diplomat.is.