Flint's Diplomat to Acquire California-based Specialty Pharmacy
Diplomat Pharmacy Inc., a Flint-based company that offers personalized medication for patients with specialized needs, has entered into an agreement to acquire Valley Campus Pharmacy Inc., a California-based specialty pharmacy doing business as TNH Advanced Specialty Pharmacy.
In 2015, TNH generated about $400 million in revenue. Diplomat plans to fund the cash component of the purchase price with cash on hand, along with the use of its existing credit facility. The transaction is expected to close within the next two months.
"This partnership opens new prescriber relationships and growth opportunities with TNH's market concentration in California and Texas," says Phil Hagerman, chairman and CEO of Diplomat. "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."
TNH, founded in 2009, serves patients and physicians in 34 states and U.S. territories, and offers care to manage complex conditions, including oncology, hepatitis, rheumatoid arthritis, dermatology, and other specialty areas.
"TNH was founded based on the need to improve industry standards through technology for advanced specialty pharmacy services," says Avo Minasyan, CEO of TNH. "Diplomat's dedication to high-touch medication management programs for patients with complex chronic diseases echo our own."
Hagerman says the acquisition will give Diplomat access to TNH's proprietary portal platform, TNH Live. The platform offers sales and patient data.
"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," he says.
In 2015, Diplomat acquired Philadelphia-based Burman's Specialty Pharmacy and BioRx, a specialty pharmacy in Cincinnati.
Diplomat, founded in 1975, serves patients and physicians in all 50 states.