Table of Contents
FLINT, Mich. — Diplomat Pharmacy has launched an initial public offering.
Through the IPO, more than 13.3 million shares of the specialty pharmacy company’s common stock are for sale on the New York Stock Exchange under the symbol DPLO. The price is expected to be between $14 and $16 per share.
Diplomat is selling 10 million shares, and its shareholders are selling 3.3 million shares. The company plans to use the net proceeds to repay debt and for working capital and other general corporate purposes.
Founded in 1975 by chief executive officer Philip Hagerman, Diplomat describes itself as the nation’s largest independent specialty pharmacy. Its sales have been growing annually by 65% for the past eight years.
Diplomat focuses its programs and services on patients who take drugs administered on a recurring basis for complex, chronic diseases that require specialized handling. The company has nine locations in seven states. It reported sales of $1.5 billion for 2013 and a net loss of $26.1 million.
Diplomat’s medication management services include programs for oncology, immunology, hepatitis, multiple sclerosis, HIV and specialized infusion therapy, among many other serious or long-term conditions.
In mid-July, Diplomat announced the acquisition of specialty infusion provider MedProRx Inc. And in January, Diplomat said it acquired American Homecare Federation Inc., a provider of hemophilia pharmacy services.
In other news, Diplomat late last month named Stephen Brown as chief information officer.
Brown will oversee the IT department as well as strategic planning, data warehouse management and internal/external partnerships. He had been an executive consultant specializing in the development of technology architectures and organizational solutions, new client acquisition and business development. Before that, he served as CIO of Omnicare, a specialist in providing medications to the elderly community.
