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Diplomat Pharmacy, Inc.

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2019 10-Q, filed Nov 12, 2019. Its latest SEC filing is a 15-12B from Feb 20, 2020.

The sections below describe the company as of the FY2018 annual report.

What Did They Do?

Dispenses specialty medicines and provides infusion care for patients with complex chronic diseases, and offers pharmacy-benefit management services to health plans, employers and other payers.

How Did They Make Money?

The company sells prescription drugs through its specialty, mail and retail-network pharmacies. It earns money on home-delivery prescriptions when drugs arrive, and on pharmacy pickups or retail-network prescriptions when the claim is processed.

FY2018 revenue

Who Were Their Customers?

Patients receive specialty drugs at home or through physicians’ offices; prescribers refer patients, while managed care organizations, employer groups, unions and plan administrators contract for pharmacy-benefit services. Hospitals and health systems also partner with Diplomat for specialty-pharmacy support.

Did Revenues Turn Into Profits?

Not on paper. It lost $302.3M in FY2018, but brought in more cash than it spent: $33.9M of free cash flow.

Operating income, FY2018
−5% of revenue
▼ Now a loss vs FY2017 ($18.6M, 0%)
Net income, FY2018
−6% of revenue
▼ Now a loss vs FY2017 ($15.5M, 0%)
Free cash flow, FY2018
1% of revenue
▲ Now profitable vs FY2017 (−$487.8M, −11%)

How Were They Changing?

Since the FY2018 annual report
Latest quarter: Q3 FY2019, the three months to Sep 30, 2019
Revenue
▼ −5%
vs $1.4B in Q3 FY2018
Net income
▼ Now a loss
vs $169K in Q3 FY2018

Grew. Revenue grew 2.5x in 4 years, from $2.2B in FY2014 to $5.5B in FY2018, about 25% a year.

Added pharmacy-benefit management The older report framed Diplomat as a specialty pharmacy company independent of pharmacy-benefit management. The latest report also describes pharmacy-benefit services, from prescription-claim handling to retail networks, mail-order pharmacy and drug-plan support.

Who Did They Compete With?

Competes with CVS Caremark, Express Scripts, and Walgreens

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