UnitedHealth Group buys specialty pharmacy

EDEN PRAIRIE, Minn., and FLINT, Mich. - UnitedHealth Group's Optum division will pay about $300 million to buy Diplomat, a provider of specialty pharmacy and infusion services, according to news reports.

Diplomat focuses on managing specialty medications, including oncology and immunology, and provides specialized infusion therapies in all 50 states and Washington, D.C.

“With its focus in specialty and infusion services, Diplomat has a proven track record of solving the unique challenges facing patients with complex health care needs,” said John Prince, CEO of OptumRx. “This combination will expand the innovative specialty pharmacy and infusion solutions OptumRx can offer to the consumers and clients we serve, helping ensure people get the right medications and services at the right time, in the right setting.”

Per terms of the deal, Optum's OptumRx will acquire Diplomat's outstanding stock for $4 per share through a cash tender offer and assumption of outstanding debt.

Diplomat was founded in 1975 and entered the PBM market in 2017, where it has had trouble maintaining clients, according to Modern Healthcare News. In August of this year, it said it was considering a sale or merger.

“Since co-founding the company in 1975 with my father, I have had the honor of helping to transform Diplomat into a specialty pharmacy services leader,” said Philip R. Hagerman, RPh, Diplomat co-founder and chairman emerituse. “This combination will create significant value for Diplomat's specialty pharmacy consumers and clients, and I look forward to the combined companies' future success.”