PolyMedica Announces Acquisition Of National Diabetic Pharmacies, Inc

WOBURN, Mass.--(BUSINESS WIRE)--Aug. 5, 2005--PolyMedica Corporation (NASDAQ:PLMD) announced today that it has agreed to acquire National Diabetic Pharmacies, Inc. in a transaction valued at approximately $55 million. The transaction, which is subject to Hart-Scott-Rodino approval, is expected to close in the fiscal second quarter ended September 30, 2005. The acquisition is expected to be neutral to mildly dilutive to PolyMedica's earnings per share in fiscal 2006 and to be accretive in fiscal 2007 and beyond. Commenting on the acquisition, Patrick Ryan, PolyMedica's president and chief executive officer, said, "David Dixon and his team at National Diabetic Pharmacies will play an important role in our future growth plans. The company has established itself as the premier provider of diabetes products and disease management services to the commercial market, and more than half of their over 100,000 active patients have come from programs they have established with managed care organizations and employers. This transaction represents an important strategic step by the Company to expand into the commercial market. National Diabetic Pharmacies has a strong healthcare professional sales force that will allow Liberty to begin selling directly to healthcare professionals. In addition, this transaction expands our services into the insulin pump sector, adding an important service for our patients."