Diplomat to acquire TNH Advanced Specialty Pharmacy

FLINT, Mich. — Diplomat Pharmacy on Thursday announced the planned acquisition of Valley Campus Pharmacy, which does business as TNH Advanced Specialty Pharmacy (TNH). The deal will see the nation’s largest independent specialty pharmacy acquiring the seven-year-old oncology-focused company for $75 million, a mixture of cash and about 328,000 shares of Diplomat stock. 

 

“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,” Diplomat CEO and chairman Phil Hagerman said. “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 currently dispenses 20 limited distribution drugs, many of which are oncology drugs, and it is one of the country’s fastest growing independent pharmacies, posting revenues of about $400 million in 2015, up from $240 million in 2014. In addition, TNH has relationships with some 1,700 referring prescribers and a platform called TNH Live, which allows for transparency between prescribers, pharma companies and payers with its real-time data capabilities. 

 

“We are proud and excited to join the Diplomat family of companies,” TNH CEO Avo Minasyan said. “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.”

 

Diplomat said it expects to close the transaction in the next 30 to 60 days, with plans to leave key management team members and co-founders in place.