Flint-based Diplomat Pharmacy Inc., which produces specialized prescription drugs, today announced it has entered into a definitive agreement to acquire Pharmaceutical Technologies Inc., doing business as National Pharmaceutical Services (NPS). The transaction is expected to close in 30 days. Per the agreement, Diplomat will pay NPS $47 million, including real estate valued at $10 million.
NPS is a full-service pharmacy benefit manager (PBM) based in Omaha and features a proprietary claims processing system and mail order service under its integrated HMO Pharmacy. The acquisition cost represents $31 million in cash on hand and an existing credit facility, along with $16 million in common stock.
“Industry dynamics and the evolution of our payer strategy have accelerated our push to add PBM-like services,” says Phil Hagerman, CEO and chairman of Diplomat. “Enhancing our managed markets strategy with PBM services expands Diplomat's service offerings from a specialty pharmacy provider to a broader health care company. This further positions us to offer necessary services to our partners throughout the industry.”
Hagerman adds that small and midsize payers, self-funded employers, and unions are currently seeking flexible solutions to improve health care outcomes and reduce costs. Partnering with NPS is part of Diplomat’s strategy to meet their clients’ needs.
The acquisition is also expected to increase Diplomat’s ability to develop complete solutions, including cost justification, containment, and health care reporting.
NPS’ mission is to improve member quality of life through flexible, affordable solutions with personalized service to its pharmacy benefit partners. The company also builds end-to-end solutions to control prescription drug spending and manages a proprietary claims processing system.