February 22, 2019 / 2:03 PM / 7 months ago

UPDATE 1-Diplomat Pharmacy pulls 2019 forecast, delays results on charge

(Adds details from statement)

Feb 22 (Reuters) - Diplomat Pharmacy Inc said on Friday it would withdraw its full-year forecast and delay its annual and fourth-quarter results after determining that it would need to record a charge related to its pharmacy benefits management (PBM) business.

The company’s shares fell 20 percent to $10.75 before the opening bell.

The charge relates to the 2017 acquisitions of National Pharmaceutical Services and LDI and is driven by reduced financial forecasts for the PBM business, Diplomat said.

Diplomat bought Missouri-based LDI Integrated Pharmacy Services for $388 million in cash and $80 million in stock, a week after buying NPS, another PBM.

The charge is expected to be equal to a significant portion of the PBM’s goodwill assets, which totaled about $630 million as of Dec. 31, the company said.

Reporting by Manas Mishra in Bengaluru; Editing by Sriraj Kalluvila

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