FLINT, Mich., Aug. 9, 2019 /PRNewswire/ -- Diplomat
Pharmacy, Inc. (NYSE: DPLO) today announced that its Board
of Directors is reviewing strategic alternatives.
At the direction of its Board of Directors, the company is
reviewing strategic alternatives focused on maximizing shareholder
value. The strategic alternatives expected to be considered
include, but are not limited to, a sale or merger of the Company,
continuing to pursue value-enhancing initiatives as a standalone
company, capital structure changes, or the sale or other
disposition of certain of the Company's businesses or assets.
Diplomat has retained Foros Securities LLC as financial advisor and
Sidley Austin LLP as legal advisor to assist with its strategic
alternatives review.
"We are focused on growing our Specialty business with health
plans and hospital systems, positioning the PBM business for growth
and improving operating efficiency, while maintaining high
standards of patient and customer care," said Brian Griffin, Chairman and CEO of Diplomat. "At
the same time, the Board believes that a broad review of strategic
alternatives is in the best interests of the Company and our
shareholders."
"Diplomat remains committed to supporting our patients,
physicians and manufacturer partners, as well as clients and team
members during this process," Griffin said.
There can be no assurance that this process will result in the
approval or completion of any particular strategic alternative or
transaction in the future. The Company does not intend to disclose
developments or provide updates on the progress or status of the
review of strategic alternatives unless and until required or when
the Company determines appropriate.
Forward-Looking Statements
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 and may include Diplomat's
expectations regarding the strategic alternatives review process
and potential transactions that may be identified and explored as a
result of such review process, the benefits and performance of
business and growth strategies and impact of operational
improvement initiatives. 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
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. These risks and uncertainties
include: the ability to identify and consummate strategic
alternatives that yield additional value for shareholders; the
timing, benefits and outcome of the Company's strategic
alternatives review process, including the determination of whether
or not to pursue or consummate any strategic alternative;
the structure, terms and specific risks and uncertainties
associated with any potential strategic transaction; potential
disruptions in our business and the stock price as a result of our
exploration, review and pursuit of strategic alternatives or the
public announcement thereof and any decision or transaction
resulting from such review, including potential disruptions with
respect to our employees, vendors, clients and customers; our
ability to adapt to changes or trends within the specialty pharmacy
industry; a significant increase in competition from a variety of
companies in the healthcare industry; significant and
increasing pricing pressure from third party payors, resulting in
continuing margin compression and adversely impacting contract
profitability and creating the potential that we will elect not to
continue to participate in certain pharmacy provider
networks; possibility of client losses and/or the failure to
win new business; the dependence on key employees and effective
succession planning and managing recent turnover among key
employees; potential disruption to our workforce and operations due
to cost savings and restructuring initiatives; disruption in our
operations as we implement a new operating system within our
Specialty segment; our ability to expand the number of specialty
drugs we dispense and related services; maintaining existing
patients; increasing consolidation in the healthcare industry; our
relationships with wholesalers and key pharmaceutical
manufacturers; bad publicity about, or market withdrawal of,
specialty drugs we dispense; managing our growth effectively; our
ability to drive volume through a refreshed marketing strategy in
traditional specialty pharmacy; failure to effectively
differentiate our products and services in the PBM marketplace;
investments in new business strategies and initiatives, including
with respect to data and analytics capabilities, could disrupt our
ongoing business and present risks not originally contemplated; and
the additional factors set forth in "Risk Factors" in Diplomat's
Annual Report on Form 10-K for the year ended December 31, 2018, 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.
About Diplomat
Diplomat (NYSE: DPLO) is the nation's largest independent
provider of specialty pharmacy and infusion services. Diplomat
helps people with complex and chronic health conditions in all 50
states, partnering with payers, providers, hospitals,
manufacturers, and more. Rooted in this patient care expertise,
Diplomat also serves payers through CastiaRx, a leading specialty
benefit manager, and offers tailored solutions for healthcare
innovators through EnvoyHealth. 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. For
more information, visit diplomat.is.
CONTACT:
Terri Anne Powers, Vice President of
Investor Relations
312.889.5244 | tpowers@diplomat.is
View original content to download
multimedia:http://www.prnewswire.com/news-releases/diplomat-announces-review-of-strategic-alternatives-300899272.html
SOURCE Diplomat Pharmacy, Inc.
