FLINT, MI — Diplomat Pharmacy has completed the acquisition of Affinity Biotech, Inc., a specialty pharmacy, and infusion services company based in Houston, Texas that provides treatments and nursing services for patients with hemophilia.
Diplomat officials made an announcement Feb. 1 saying the acquisition will open the Flint-based pharmaceutical company to expand its reach to both New York and Texas.
“Affinity Biotech’s established presence in Texas and New York opens new sales synergies and opportunities,” said Phil Hagerman, CEO and chairman commented. “The New York facility allows us to open the door to service the state’s 4.8 million Medicaid patients. Further, the purchase of a second Texas facility builds upon our service to the state’s 3.7 million Medicaid patients. By adding a presence in New York City and Houston, we strengthen Diplomat’s footprint in primary geographic markets and make our organic growth opportunities and our services stronger in the evolving specialty pharmacy landscape.”
Under the terms of the agreement, Diplomat purchased Affinity Biotech for $16 million cash, and up to an additional $4 million in contingent consideration. In 2016, Affinity Biotech generated an estimated $27 million in revenue and $3 million in adjusted EBITDA.
Diplomat founded in 1975, became public October 2014. During that time, the company’s shares were trading at $16.83 per share. According to officials the company raised more than $173 million with its IPO. In 2014, Diplomat officials said the company planned to pay off debts and reinvest the rest of the money for acquisitions.
“We take great pride in not only providing the best possible care for our patients but in supporting the bleeding disorders community as a whole,” said Phil Rielly, vice president, president, Diplomat Specialty Infusion Group. “Our partnership with Affinity Biotech will build upon our dedication to being the country’s most patient-centered specialty pharmacy.”