FLINT, Mich., May 8, 2017 /PRNewswire/ -- Diplomat Pharmacy, Inc. (NYSE: DPLO)., has completed its acquisition of WRB Communications, Inc. ("WRB"), a health care service center company based in Chantilly, Virginia.
WRB specializes in relationship management programs for leading pharmaceutical manufacturers and health care service organizations.
WRB will join Envoy Health Management, LLC, as part of Diplomat's commercialization support services for manufacturers, biotech firms, and other service companies. Together, WRB and EnvoyHealth will offer extensive solutions to meet growing demand for patient access; medical information; customer care; reimbursement; inside sales and tele-detailing; and unique distribution.
WRB is a leading provider of multichannel service center solutions for pharmaceutical manufacturers, biotech, medical device organizations, and other health care industries. WRB's management team has more than 100 years of combined experience in health information offerings and customer service programs.
"Here at Diplomat, we are deeply committed to investing in our patients and existing partner relationships," said Phil Hagerman, CEO and chairman at Diplomat. "This is a strategic acquisition in line with our growth strategy, and the hub services market represents an exciting and growing opportunity for Diplomat. With the increased demand for outsourcing from small and emerging biotech, WRB adds needed capabilities to Diplomat. Continuing to grow our service offerings will engage us earlier in the drug development lifecycle, tying us closer to our manufacturing partners and creating additional sell-in channels at each development stage."
"Both WRB and Diplomat are born from an entrepreneurial spirit and share a common culture and focus," said Ron Abel, president of WRB. "Diplomat will connect WRB with the resources it needs to continue its growth and expand its services. Diplomat has many relationships with pharmaceutical manufacturers, payors, and providers that can benefit from WRB's customer relationship management services."
"The hub services market represents an exciting opportunity," said Jennifer Cretu, senior vice president of pharma services and marketing at Diplomat. "With the growing need for hub services, we are proud to enhance EnvoyHealth with WRB. Pharmaceutical Commerce magazine recently published its 2017 Hub Services report, which highlights the growing need for hub services by pharma due to the rise of specialty. Several of the industry drivers that were mentioned fit our wheelhouse, such as greater emphasis on assisting providers with prior authorizations, developing a comprehensive outcomes dashboard, expanding patient assistance due to increasingly complex treatment protocols, and controlling the cost curve through outcomes utilization."
Under the terms of the agreement, Diplomat is paying WRB $24.5 million cash and $4.5 million of Diplomat common stock. Under the terms of a two-year contingent earnout, WRB can earn an additional payout of up to $1 million based upon achievement of EBITDA-based targets in the 12-month periods ending May 31, 2018, and May 31, 2019. In 2016, WRB generated $15 million in revenue and $2.2 million in adjusted EBITDA.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance. The forward-looking statements contained in this press release are based on management's good-faith belief and reasonable judgment based on current information. These risks and uncertainties include: delays or difficulties in integrating the combined businesses; general economic conditions in the regions and industries in which the parties operate; and the ability to achieve cost savings and operating synergies and the timing thereof. These statements are qualified by important risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those forecasted or indicated by such forward-looking statements. For a discussion of such risks and uncertainties, you should review Diplomat's filings with the Securities and Exchange Commission, including "Risk Factors" in Diplomat's Annual Report on Form 10-K for the year ended Dec. 31, 2016 and in subsequent reports filed with or furnished to the Securities and Exchange Commission. Except as may be required by any applicable laws, Diplomat assumes no obligation to publicly update such forward-looking statements, which are made as of the date hereof or the earlier date specified herein, whether as a result of new information, future developments or otherwise.
Diplomat (NYSE: DPLO) is the nation's largest independent provider of specialty pharmacy services—helping patients and providers in all 50 states. The company offers medication management programs for people with complex chronic diseases and delivers unique solutions for manufacturers, hospitals, payors, providers, and more. Diplomat opened its doors in 1975 as a neighborhood pharmacy with one essential tenet: "Take good care of patients and the rest falls into place." Today, that tradition continues—always focused on improving patient care and clinical adherence. For more information, visit diplomat.is.
Bob East, Westwicke Partners
443.213.0500 | email@example.com
Jenny Cretu, Diplomat
810.768.9370 | firstname.lastname@example.org
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SOURCE Diplomat Pharmacy, Inc.