Officials from GE Capital's Healthcare Financial Services (HFS) division said last week that it has provided a $320 million senior secured credit facility to the United States' largest independent specialty pharmacy, Flint, Michigan-based Diplomat Pharmacy, Inc.
Diplomat focuses on medication-management programs for patients who need oncology, immunology, hepatitis, multiple sclerosis, human-immuno deficiency, specialized infusion therapy and other services indicated involving long-term medical conditions. The company also provides patient-support services at the national retailer and major hospital levels.
"We were looking for timely and reliable execution of this credit facility, with flexible terms to support our continued rapid growth," Sean Whelan, Diplomat’s chief financial officer, said. “GE Capital’s health care finance team understands our business very well, which really helped in the structuring and execution of this transaction.”
Part of the GE Capital funding was used to purchase BioRx LLC, a specialized pharmacy and infusion services company based in Cincinnati. BioRx provides treatment options for patients afflicted with rare, chronic diseases. The rest of the funds will be retained as working capital for other general corporate expenses.
“We’re pleased to have successfully completed this latest financing for Diplomat,” David Varhol, managing director of HFS’ corporate finance team, said. “We’re seeing continued rapid growth and consolidation within the specialty pharmacy industry, particularly in the specialty infusion space. This acquisition helps expand Diplomat’s presence in specialty infusion while it continues its rapid organic growth.”