Diplomat reports Q2 results, including 35% total revenue gain

FLINT, Mich. — Diplomat Pharmacy on Tuesday announced the results of its second quarter, reporting total revenue of $1.09 billion, a 35% increase over the same quarter in 2015. 

 

Net income attributable to Diplomat was $8.5 million, a 152% increase over the same quarter last year, due partially to lower interest expense and a lower income tax rate for the period than the same one last year. Adjusted earnings before interest taxes, depreciation and amortization were $29.6 million, up from $22.7 million for the quarter last year. Diplomat’s gross profit grew to $83.3 million, up from $69.7 million last year, but the margin percentage dropped one percentage point from last year to 7.6%.

 

“While our overall business was impacted by a slowing hepatitis C market, the remainder of our business was strong, growing almost 30% organically,” Diplomat chairman and CEO Phil Hagerman said. “This growth was driven by our oncology business increasing 38% and our specialty infusion segment growing by 22%. 

 

The company reported organic revenue growth of 23% that the company attributes to $64 million in revenue from new drugs, $63 million from manufacturer price increases, and $57 million from a richer mix of already existing drugs. Another $96 million came from the company’s recent acquisitions, including about a quarter’s worth of revenue from Burman’s Apothecary and a month’s revenue from TNH Advanced Specialty Pharmacy. The company dispensed 241,000 prescriptions in Q2, up 3% from last year. 

 

“Overall prescription growth was much stronger than the 3% implies, as we exited the high volume, low profit compounding business in late 2015 and we intentionally moved away from other high volume, low revenue non-specialty business,” Hagerman said. 

 

The company adjusted its guidance for the full-year 2016, raising the lower end of its adjusted earnings per share guidance to  between $0.90 and $0.95 from $0.88 to $0.95.