DPLO - Here's Why Diplomat Pharmacy Got Hammered Today
Shares of Diplomat Pharmacy (NYSE: DPLO) are down 59% at 11:28 a.m. EST after the specialty pharmacy and pharmacy benefit manager released shocking news during its third-quarter earnings report:
As of November 28, 2019, we will no longer participate in a significant group of specialty and retail networks with one of our largest payers. We were unable to reach an agreement to renew network participation rates. While this group of networks is not the only network group that we participate in for this payer, it does comprise the vast majority of the specialty pharmacy business that we do with this payer.
The group of networks is expected to add $700 million in revenue in 2019. That's about 14% of the approximately $5 billion in revenue that Diplomat Pharmacy expects to bring in this year.