3. 2
Fourth Quarter Results
(1) Based on dispensed prescriptions only.
(2) Gross profit / net sales (i.e., based on dispensed and serviced prescriptions).
$412
$612
4Q13A 4Q14A
Revenue
EBITDA
margin
1.4%
$5.8
$10.5
4Q13A 4Q14A
Adjusted EBITDA
$126
$187
4Q13A 4Q14A
Gross Profit
/Prescription($ in millions) ($ in millions)
1.7%6.7%6.1%
(1)
Gross
margin
(2)
4. 3
Balance sheet snapshot
2013
($ in millions)
Cash $9
Total debt $88
2014
$18
–
December 31,
* Includes a $63M draw on a $120M revolving line of credit
*
5. 2015 Guidance
4
2014 Results 2015 Guidance
Implied
Midpoint Growth
Revenue $2.2b
$2.8b - $3.1b
*Includes $150-200M
from 9 months of BioRx
+34%
Adjusted EBITDA $35.2m
$63m - $67m
*Includes $18-20M
from 9 months of BioRx
+85%
*Assuming a March 31, 2015 close
7. Transaction Summary
6
Target
Purchase Price
Consideration
Management
Anticipated
Closing
• BioRx, LLC
• Specialty pharmacy and infusion services company that provides treatments for patients with ultra-orphan
and rare, chronic diseases based in Cincinnati, Ohio
• 2014 revenue of ~$227 million and EBITDA of ~$23 million
• $315 million gross purchase price
• $265 million adjusted purchase price
- Net of future tax benefit of approximately $50 million
- Represents ~11.5x trailing CY 2014 EBITDA
• One year contingent earnout of additional $35 million in DPLO stock subject to an EBITDA-based target
• $210 million in cash
- Committed financing provided by GE Capital
• $105 million in stock, representing ~4 million shares
- Pro forma ownership of ~7% (pre-earnout)
• Expected to be accretive to EPS in first full year post-close
• BioRx co-founders have made multi-year commitments to help lead the Diplomat specialty infusion
organization
• The transaction is anticipated to close in the next 30-60 days
• Subject to regulatory approvals and other customary closing conditions
8. Strong Strategic Value For Diplomat
7
• Benefits Diplomat’s primary constituents:
- Broadens patient offerings
- Meets Pharma’s demand for multi-channel reach
- Addresses Payors’ desires to shift site of care to a lower cost setting
• Adds significant scale to our specialty infusion business
- Diplomat is now one of the nation’s top specialty infusion providers
• Provides ability to compete for national contracts
• Offers both revenue and cost synergies
• Increases exposure to higher margin businesses
• Potential for addition of new disease states & therapeutic categories
9. • Founded in 2004
• Unique additional
limited distribution drugs
• Focuses on treating small
patient populations with rare
diseases, which typically have
complex treatment protocols at high costs, similar to Diplomat
• Pure specialty & nutrition portfolio with strong immuno-therapy
volume
BioRx Snapshot
$0
$50
$100
$150
$200
$250 Revenue History
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
8
