Diplomat Pharmacy

Last updated
Diplomat Pharmacy, Inc.
NYSE:  DPLO
Industry Pharmaceutical
Founded1975;49 years ago (1975) in Flint, Michigan
Founder
Headquarters
Flint, Michigan
,
United States
Key people
Brian Griffin (CEO)
Number of employees
2,298 [1]  (2017)
Website www.diplomatpharmacy.com

Diplomat Pharmacy, Inc. is the largest independent provider of specialty pharmacy services in the United States. [2] The company partners with manufacturers, payers, providers, hospitals, and more. [3] Headquartered in Flint, Michigan, Diplomat has facilities across the United States and dispenses drugs in all 50 states. [4] Diplomat offers specialized medication and medication management programs for patients with complex and chronic conditions such as cancer, hepatitis, multiple sclerosis, HIV and others. [5]

Contents

In October 2014, Diplomat Pharmacy launched an initial public offering (IPO) on the New York Stock Exchange after raising $173 million. [6] Diplomat is the only publicly traded company in the United States that offers a specialty pharmacy independent of pharmacy benefit manager, health plan, retail chain, or wholesaler ownership. [7]

Services

Diplomat distributes many medications in CarePak adherence packaging, specially designed to improve patient adherence. [8] Diplomat also serves as the specialty pharmacy for many retail pharmacies, hospitals and health systems throughout the United States. [9]

For hemophilia and other blood disorder patients, they offer in-home and outpatient specialty infusion services. [10]

Accreditations

Diplomat is accredited by third-party agencies including URAC, the American Society of Health-System Pharmacists, Accreditation Commission for Health Care, Health Information Trust Alliance, and the Center for Pharmacy Practice Accreditation. The company also holds Verified-Accredited Wholesale Distributors and Verified Internet Pharmacy Practice Sites accreditations from the National Association of Boards of Pharmacy. [11]

History

Dale Hagerman and his son Philip Hagerman cofounded Diplomat Pharmacy in 1975 in Flint, Michigan. [4] In 1991, Philip Hagerman became chairman and CEO. [12] In December 2010, Diplomat moved its headquarters back to a distribution facility in Flint from Swartz Creek, Michigan. [13]

In 2014, Diplomat ranked 69th on the Inner City 100 list of the fastest growing companies based in inner cities. [4] In July 2014, Diplomat acquired MedPro Rx, a specialty pharmacy based in North Carolina. [14] In October 2014, Diplomat went public, after raising $173 million for its IPO. [12] [13]

In February 2015, Diplomat acquired BioRx, a specialty pharmacy in Cincinnati, Ohio for $315 million. [15] In June 2015, Diplomat acquired Philadelphia-based Burman’s Specialty Pharmacy for $73 million. [16]

In June 2016, Diplomat acquired Valley Campus Pharmacy Inc., doing business as TNH Advanced Specialty Pharmacy, a specialty pharmacy focusing on oncology, hepatitis, and immunology. [17] In December 2016, Diplomat combined several subsidiary companies under one name—Diplomat Specialty Infusion Group. [18]

In February 2017, Diplomat acquired Affinity Biotech Inc., a specialty pharmacy and infusion services company in Houston, Texas. [19] In March 2017, Diplomat acquired Comfort Infusion, a company specializing in globulin therapy, based in Birmingham, Alabama. [20] Comfort Infusion became part of the Diplomat Specialty Infusion Group. [21] In May 2017, Diplomat acquired WRB Communications Inc., a provider of relationship management programs for pharmaceutical manufacturers and healthcare service organizations. [22] In September 2017, Diplomat acquired Focus Rx Pharmacy Services Inc., a provider of home infusion and specialty prescription management services. [23] In October 2017, Diplomat acquired 8th Day Software and Consulting LLC, based in Tennessee. [24]

On October 9, 2017, co-founder Dale Hagerman died at the age of 90. [25] In November 2017, Diplomat acquired Pharmaceutical Technologies Inc., doing business as National Pharmaceutical Services (NPS). NPS is a pharmacy benefit manager based in Omaha, Nebraska. [26] In December 2017, Diplomat acquired Leehar Distributors LLC, doing business as LDI Integrated Pharmacy Services, from Nautic Partners LLC, Oak HC/FT Partners LLC, and management. LDI is a full-service pharmacy benefit manager based in St. Louis, Missouri. [27]

On January 5, 2018, Phil Hagerman announced his retirement and Jeff Park was appointed interim CEO. [28] In April 2018, Diplomat introduced CastiaRx, a combination of acquired pharmacy benefit managers LDI and NPS. In May 2018, Diplomat announced Brian Griffin as its new CEO and chairman of the board of directors, effective June 4, 2018. Griffin was hired from Anthem, Inc., where he served as CEO of in-house pharmacy benefit manager IngenioRx. [29]

In December 2019, it was announced that Diplomat was being acquired by OptumRX, a subsidiary of UnitedHealth Group, for $300 million. [13] [30]

Related Research Articles

<span class="mw-page-title-main">Osco Drug and Sav-on Drugs</span> Retail pharmacy chains in the United States

Osco Drug and Sav-on Drugs were the names of a pair of chain pharmacies that operated in the United States. Osco Drug was founded by the Skaggs family. Alpha Beta grocery store was purchased by American Stores in 1961. Skaggs Drug Centers bought American Stores in 1979 and assumed the American Stores name. Sav-on Drugs was a California-based pharmacy chain that was acquired by Osco's parent company in 1980. Both Osco and Sav-on stores eventually came under the ownership of American Stores, then Albertsons, and finally SuperValu before the stores were sold off.

Shoppers Drug Mart Inc., commonly known as Shoppers is a Canadian retail pharmacy chain based in Toronto, Ontario. It has more than 1,300 stores in ten provinces and two territories.

<span class="mw-page-title-main">Jean Coutu Group</span>

The Jean Coutu Group (PJC) Inc. is a Canadian drugstore chain headquartered in Varennes, Quebec. It has more than 400 franchised locations in New Brunswick, Ontario and Quebec under the PJC Jean Coutu, PJC Clinique, and PJC Santé banners. The company was once the third largest distributor and retailer of pharmaceuticals and related products in North America, with nearly 2,200 drug stores. Its American stores have been sold to Rite Aid.

<span class="mw-page-title-main">CVS Pharmacy</span> American pharmacy chain

CVS Pharmacy, Inc. is an American retail corporation. A subsidiary of CVS Health, it is headquartered in Woonsocket, Rhode Island. Originally named the Consumer Value Stores, it was founded in Lowell, Massachusetts in 1963.

<span class="mw-page-title-main">Hy-Vee</span> American supermarket chain

Hy-Vee, Inc. is an employee-owned chain of supermarkets in the Midwestern and Southern United States, with more than 280 locations in Iowa, Illinois, Kansas, Minnesota, Missouri, Nebraska, South Dakota, Wisconsin, with stores planned in Indiana, Kentucky, Tennessee, and Alabama. Hy-Vee was founded in 1930 by Charles Hyde and David Vredenburg in Beaconsfield, Iowa, in a small brick building known as the Beaconsfield Supply Store, which is listed on the National Register of Historic Places.

WebMD is an American corporation which publishes online news and information about human health and well-being. The WebMD website also includes information about drugs and is an important healthcare information website and the most popular consumer-oriented health site.

<span class="mw-page-title-main">Cardinal Health</span> American multinational health care services company

Cardinal Health, Inc. is an American multinational health care services company, and the 14th highest revenue generating company in the United States. Headquartered in Dublin, Ohio, the company specializes in the distribution of pharmaceuticals and medical products, serving more than 100,000 locations. The company also manufactures medical and surgical products, including gloves, surgical apparel, and fluid management products. In addition, it operates one of the largest networks of radiopharmacies in the U.S. Cardinal Health provides medical products to over 75 percent of hospitals in the United States.

Longs Drugs is an American chain owned by parent company CVS Health with approximately 70 drugstores throughout the state of Hawaii and formerly in the Continental US.

Express Scripts Holding Company is a pharmacy benefit management (PBM) organization. In 2017 it was the 22nd-largest company in the United States by total revenue as well as the largest pharmacy benefit management (PBM) organization in the United States. Express Scripts had 2016 revenues of $100.752 billion. Since December 20, 2018, the company has been a direct subsidiary of Bloomfield, Connecticut-based Cigna.

<span class="mw-page-title-main">Thrifty White</span>

Thrifty White Pharmacy is an American pharmacy chain with operations in six states, Montana, North Dakota, South Dakota, Minnesota, Wisconsin, and Iowa headquartered in Plymouth, MN. The firm specializes in filling prescriptions, long term care consulting, community outreach, and specialty services. As of September 2016, Thrifty White received full URAC accreditation for its specialty pharmacy.

In the United States, a pharmacy benefit manager (PBM) is a third-party administrator of prescription drug programs for commercial health plans, self-insured employer plans, Medicare Part D plans, the Federal Employees Health Benefits Program, and state government employee plans. According to the American Pharmacists Association, "PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with drug manufacturers, and processing and paying prescription drug claims." PBMs operate inside of integrated healthcare systems, as part of retail pharmacies, and as part of insurance companies.

PharMerica is a Fortune 1000 company formed in January 2007 from the merger of Kindred Healthcare's pharmacy business with a subsidiary of AmerisourceBergen.

CVS Health Corporation is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; and Aetna, a health insurance provider, among many other brands. The company is the world's largest healthcare company, and its headquarters are in Woonsocket, Rhode Island.

Catamaran Corporation is the former name of a company that now operates within UnitedHealth Group's OptumRX division. It sells pharmacy benefit management and medical record keeping services to businesses in the United States and to a broad client portfolio, including health plans and employers. Working independently of the government and insurance companies allowed it to operate as a third party verifier; the RxCLAIM online claim processing system allowed for prescription drug claims to be processed online if the customer lived in and filled his/her prescription in the United States. SXC had three separate but interrelated business segments which dealt with prescription drug programs. For 2013, 23% of company revenue came from Cigna Corporation.

Inovalon is an American technology company that provides cloud-based tools for healthcare.

Specialty drugs or specialty pharmaceuticals are a recent designation of pharmaceuticals classified as high-cost, high complexity and/or high touch. Specialty drugs are often biologics—"drugs derived from living cells" that are injectable or infused. They are used to treat complex or rare chronic conditions such as cancer, rheumatoid arthritis, hemophilia, H.I.V. psoriasis, inflammatory bowel disease and hepatitis C. In 1990 there were 10 specialty drugs on the market, around five years later nearly 30, by 2008 200, and by 2015 300.

Philidor Rx Services is a Pennsylvania-licensed specialty online pharmacy, which mainly sold Valeant Pharmaceuticals International Inc drugs directly to patients and handled insurance claims on the customers' behalf.

Specialty pharmacy refers to distribution channels designed to handle specialty drugs — pharmaceutical therapies that are either high cost, high complexity and/or high touch. High touch refers to higher degree of complexity in terms of distribution, administration, or patient management which drives up the cost of the drugs. In the early years specialty pharmacy providers attached "high-touch services to their overall price tags" arguing that patients who receive specialty pharmaceuticals "need high levels of ancillary and follow-up care to ensure that the drug spend is not wasted on them." An example of a specialty drug that would only be available through specialty pharmacy is interferon beta-1a (Avonex), a treatment for MS that requires a refrigerated chain of distribution and costs $17,000 a year. Some specialty pharmacies deal in pharmaceuticals that treat complex or rare chronic conditions such as cancer, rheumatoid arthritis, hemophilia, H.I.V. psoriasis, inflammatory bowel disease (IBD) or Hepatitis C. "Specialty pharmacies are seen as a reliable distribution channel for expensive drugs, offering patients convenience and lower costs while maximizing insurance reimbursements from those companies that cover the drug. Patients typically pay the same co-payments whether or not their insurers cover the drug." As the market demanded specialization in drug distribution and clinical management of complex therapies, specialized pharma (SP) evolved.„ Specialty pharmacies may handle therapies that are biologics, and are injectable or infused. By 2008 the pharmacy benefit management dominated the specialty pharmacies market having acquired smaller specialty pharmacies. PBMs administer specialty pharmacies in their network and can "negotiate better prices and frequently offer a complete menu of specialty pharmaceuticals and related services to serve as an attractive 'one-stop shop' for health plans and employers."

Phil Hagerman is an American entrepreneur, philanthropist, pharmacist and former CEO and chairman of Diplomat Pharmacy, Inc. Diplomat was the largest independent provider of specialty pharmacy services in the United States until its sale to Optum/United Health in February 2020 He co-founded Diplomat Pharmacy, Inc. in 1975 with his father, Dale Hagerman, and its stock was sold on the New York Stock Exchange (NYSE) starting in October 2014.

Dale Hagerman was an American pharmacist and businessman, and co-founder of Diplomat Pharmacy with his son Phil Hagerman.

References

  1. ↑ "Diplomat Pharmacy". Fortune. Retrieved 2019-01-15.
  2. ↑ Lauerman, Michelle Cortez FayCortez John (12 November 2015). "Valeant's Favorite Pharmacy Made Life Easy for Doctors, at a Price". Bloomberg.com. Retrieved 2015-12-10.
  3. ↑ "Diplomat 2017 10-K Report via the Security Exchange Commission" (PDF). Security Exchange Commission. February 27, 2018.
  4. 1 2 3 "How one family pharmacy just might bring Flint, Michigan back to life". Fortune. Retrieved 2015-12-10.
  5. ↑ "Flint's Diplomat Pharmacy to buy competitor BioRx". Detroit News. Retrieved 2015-12-10.
  6. ↑ "Flint-based Diplomat Pharmacy launches IPO, joins NYSE". Detroit Free Press. Retrieved 2015-12-10.
  7. ↑ "Diplomat CEO on public stock sale: 'A great opportunity for the city' of Flint". MLive.com. 10 October 2014. Retrieved 2015-12-10.
  8. ↑ Wild, David. "Care Teams Are Hallmark of Ibrutinib Distribution". Specialty Pharmacy Continuum. Retrieved 4 December 2015.
  9. ↑ "2015 Hub Services Report". pharmaceuticalcommerce.com. Retrieved 2015-12-10.
  10. ↑ "Diplomat bulks up in infusion services". Chain Drug Review. 16 March 2015. Retrieved 2015-12-03.
  11. ↑ "Diplomat Sets the Standard for Independent Specialty Pharmacies". Specialty Pharmacy Times. Retrieved 2018-05-16.
  12. 1 2 Morrell, Alex. "Who Got Rich This Week: CEOs Of A Specialty Pharmacy Chain and A Networking Devices Company". Forbes. Retrieved 2020-06-30.
  13. 1 2 3 Nagl, Kurt (2019-12-09). "UnitedHealth to acquire Flint-based Diplomat Pharmacy in $300 million deal". Crain's Detroit Business. Archived from the original on 2019-12-09. Retrieved 2020-06-29.
  14. ↑ Johnsen, Michael. "Diplomat Acquires MedPro RX". Drug Store News. Retrieved 2 December 2015.
  15. ↑ "Flint's Diplomat Pharmacy to buy competitor BioRx". Detroit News. Retrieved 2015-12-10.
  16. ↑ Roberts, Adrienne (22 June 2015). "Flint-based Diplomat Pharmacy Acquires Specialty Pharmacy for $73M". DBusinees. Retrieved 2 December 2015.
  17. ↑ House, SA Editor Douglas W. (2016-04-28). "Diplomat buys CA-based specialty pharmacy". Seeking Alpha. Retrieved 2018-05-16.{{cite news}}: |first= has generic name (help)
  18. ↑ "Diplomat unifies infusion companies under new Diplomat Specialty Infusion Group - Drug Store News". Drug Store News. 2016-12-07. Retrieved 2018-05-16.
  19. ↑ "Diplomat acquires Houston-based Affinity Biotech - Drug Store News". Drug Store News. 2017-02-02. Retrieved 2018-05-22.
  20. ↑ "FIFTH AMENDMENT TO PRIME VENDOR AGREEMENT". sec.report. Archived from the original on 2020-07-14. Retrieved 2020-07-14.
  21. ↑ "Diplomat Pharmacy Inc. 10-Q for the quarterly period ended March 31, 2017". Security Exchange Commission. Archived from the original on 2018-01-30. Retrieved 2018-01-30.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  22. ↑ "Diplomat acquires WRB Communications - CDR – Chain Drug Review". CDR – Chain Drug Review. 2017-05-09. Retrieved 2018-05-22.
  23. ↑ Salazar, David (12 September 2017). "Diplomat acquires Focus Rx". Drug Store News. Archived from the original on 2019-09-04. Retrieved 2020-06-29.
  24. ↑ Salazar, David (3 October 2017). "Diplomat acquires 8th Day Software, names founder CIO". Drug Store News. Archived from the original on 2020-06-29. Retrieved 2020-06-29.
  25. ↑ Diplomat Pharmacy co-founder dead at 90 The Flint Journal via MLive.com, October 9, 2017
  26. ↑ "Diplomat Pharmacy in Flint to Acquire National Pharmaceutical Services" . Retrieved 2018-05-16.
  27. ↑ "Diplomat Pharmacy buys LDI for $595 million - CDR – Chain Drug Review". CDR – Chain Drug Review. 2017-11-16. Retrieved 2018-05-16.
  28. ↑ "Diplomat Pharmacy founder, CEO Phil Hagerman retires after 43 years". MLive.com. Retrieved 2018-05-16.
  29. ↑ "Diplomat Pharmacy appoints new CEO to replace retired co-founder". Crain's Detroit Business. 2018-05-11. Retrieved 2018-05-16.
  30. ↑ "Diplomat Pharmacy agrees to $300 million buyout by UnitedHealth". Reuters. 2019-12-09. Retrieved 2020-06-29.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.