Flint’s Diplomat Pharmacy to buy competitor BioRx
Flint-based specialty pharmacy company Diplomat Pharmacy Inc. has agreed to purchase competitor BioRx LLC in a deal worth at least $315 million, according to documents filed Thursday with the U.S. Securities and Exchange Commission.
Diplomat offered $210 million in cash and $105 million in shares toward the purchase. There is also an option for an additional $35 million in stock offered if BioRx meets sales targets during the year after the sale.
Founded in 2004, Cincinnati-based BioRX is a specialty pharmacy and infusion services company providing treatments to patients with rare and chronic diseases. In 2014, the company recorded revenues of about $227 million.
Diplomat Pharmacy is the nation’s largest independent specialty pharmacy. Started in 1975 as a single neighborhood pharmacy, the company offers medication management programs for people with complex diseases like cancer, hepatitis, multiple sclerosis and HIV.
In documents filed with the SEC, Diplomat said purchasing BioRX “broadens patient offerings” and “adds significant scale to our specialty infusion business.”
“We are very excited to expand Diplomat’s infusion services with the acquisition of BioRx.” Phil Hagerman, chairman and CEO of Diplomat said in a statement. “The combined resources of both companies will make us much stronger and unique within the infusion services industry.”
Both BioRx co-founders, Phil Rielly and Eric Hill, have made multi-year commitments to help lead the combined infusion services organization going forward. Part of the deal requires that anyone receiving Diplomat stock be subject to certain lock-up restrictions for at least six months after closing, the SEC documents said.
The sale is expected to be finalized within two months, according to the documents.