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Abrupt leadership shakeout at Diplomat Pharma hammers stock

Shares of Diplomat Pharmacy are tumbling on news that the company's president and also its chief financial officer will be out before the end of the year. The specialty pharmacy said Tuesday that President Gary Kadlec will retire in December. He will be replaced by company executive Paul Urick...

Shares of Diplomat Pharmacy are tumbling on news that the company's president and also its chief financial officer will be out before the end of the year.

The specialty pharmacy said Tuesday that President Gary Kadlec will retire in December. He will be replaced by company executive Paul Urick next month. Sean Whelan will step down as CFO and director on Dec. 31.

Mizuho analyst Ann Hynes says that the abrupt executive shakeup just a week before the company releases third-quarter earnings is "worrisome."

Diplomat Pharmacy Inc., based in Flint, Michigan, runs medication management programs for complex, chronic conditions like cancer, hepatitis and multiple sclerosis.

Company shares are down more than 6 percent to $27 before the opening bell.