Diplomat Pharmacy in Flint may seek buyer as debt situation deteriorates

Diplomat Pharmacy in Flint is facing significant debt issues and may seek a buyer for all or part of its business.
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FLINT (WJRT) (11/13/2019) - Wall Street and Mid-Michigan will be keeping a close on a Flint-based Diplomat Pharmacy on Wednesday, after the company lost more than half of its stock value a day earlier.

Diplomat's stock was valued at about $16 a year ago, but it plunged to around $3 this week.

At least 1,400 people work for Diplomat in Flint, making it the sixth largest employer in the city. On Tuesday, the company reported a third-quarter net loss of $177 million.

Diplomat Pharmacy has been in Mid-Michigan for decades. The company offers specialized medication for patients with complex medical conditions like cancer, HIV and multiple sclerosis.

Back in 2010, the company underwent a major expansion and moved its headquarters from Swartz Creek to a former General Motors Facility on Saginaw Street on Flint's south side. It's goal was to create jobs in a town where it could make an impact with a workforce ready to learn.

So what's behind the big stock drop?

According to a report from Reuters, the company is having trouble keeping up credit agreements and that could give lenders the right to terminate their funding.

Diplomat says it may have to look at selling part of its business or the whole company if it can't come up with an agreement to deal with its debt.

As of Wednesday morning, there is no word how a potential sale would affect employees or the thousands of people who receive Diplomat's medications and supplies.

Stay with ABC12 News on air and online as this story develops.