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Why Diplomat Could Be Amazon's Ticket Into The Pharma Space, Inc. AMZN confirmed its interest in the health care space earlier this year when it announced a health care partnershipwith J.P. Morgan Chase & Co. JPM and Berkshire Hathaway Inc.(NYSE: BRK-A) (NYSE: BRK-B).

The M&A environment in the health care space has been heating up in anticipation of Amazon’s presence. Amazon could be among the buyers if it chooses to make a big splash in the pharmacy benefit manager market by acquiring Diplomat Pharmacy, Inc. DPLO, said Height Capital Markets analyst Andrea Harris. 

“In December, we wrote that the political and market headwinds facing pharmacy benefit managers make them attractive M&A targets, and that vertical integration among health care companies — driven by failed managed care mergers and propelled by corporate tax cuts — would lead standalone PBMs to combine with other parts of the health care delivery chain,” Harris said in a Tuesday note. Source

Upside starts to lose it's force. Stochastics are overbought, the price may go down to the lower edge of the rising channel.

There is a chance of a breakout.