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UnitedHealth To Buy Diplomat Pharmacy For $300M

Tanzeel Akhtar

Diplomat Pharmacy (NYSE: DPLO) shares are trading lower on Monday after the company received a $4 per share acquisition offer from UnitedHealth Group's (NYSE: UNH) OptumRx.

Optum is UnitedHealth Group's pharmacy services unit and said it would buy Diplomat Pharmacy for about $303 million. Diplomat's stock closed Friday's session at $5.81 per share with a market cap at about $441 million.

"Diplomat has a long track record of providing specialty pharmacy and infusion services but has encountered operating difficulties over the last few years," Cantor Fitzgerald analyst Steven Halper wrote in a note. "...The entrance into the PBM market has not panned out as the company probably had hoped. That said, we view the acquisition as a solid move for UNH from both a strategic and financial standpoint."

Diplomat shares were trading down 31.67% at $3.97 in Monday’s pre-market session. The stock has a 52-week high of $16.53 and a 52-week low of $2.43.

Diplomat's stock has crashed twice in 2019 amid warnings the company could not continue as a going concern. Shares fell from around $13.70 to $5.87 in late February, and again from $6.20 to $3.10 in early November.

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Latest Ratings for UNH

Date Firm Action From To
Dec 2019 Reiterates Strong Buy
Dec 2019 Maintains Neutral
Dec 2019 Maintains Overweight

View More Analyst Ratings for UNH
View the Latest Analyst Ratings


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