FLINT — Diplomat Pharmacy Inc. (NYSE: DPLO) announced it had completed its acquisition of WRB Communications Inc., a health care service center company based in Chantilly, Va.
WRB specializes in relationship management programs for pharmaceutical manufacturers and health care service organizations.
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 earnings-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 earnings before interest, taxes, depreciation and amortization.
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.
“Here at Diplomat, we are deeply committed to investing in our patients and existing partner relationships,” said Phil Hagerman, Diplomat chairman and CEO. “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.”
Added Ron Abel, WRB president: “Both WRB and Diplomat are born from an entrepreneurial spirit and share a common culture and focus. 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.”
And Jennifer Cretu, senior vice president of pharma services and marketing at Diplomat, noted that “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.”
More at www.diplomat.is.