William Blair analyst John Kreger noted that Diplomat Pharmacy reiterated that it is formally assessing strategic alternatives and is in advanced stages of the process. However, the company also announced a major contract loss in the specialty pharmacy business, pointed to further client losses in the PBM business and warned it is possible that it may violate its debt covenants by the end of this year. Given that the company continues to face fundamental headwinds in both segments of the business, Kreger concludes that any sale of the company's assets could come at a depressed value, he tells investors. He keeps an Underperform rating on Diplomat shares.