The board of directors of PharMerica, a national provider of institutional pharmacy and hospital pharmacy management services, has authorized an increase in its existing share purchase program that will allow the company to purchase up to $25 million of its common stock in the open market through unsolicited or solicited privately negotiated transactions, or in such other appropriate manner, and will be funded from available cash.
The amount and timing of the purchases will be determined by PharMerica’s management and will depend on a variety of factors including price, corporate and regulatory requirements, capital availability and other market conditions. Common stock acquired through the share purchase program will be held as treasury shares and may be used for general corporate purposes.
“We remain confident in PharMerica’s long-term growth prospects. Given the market dynamics following the termination of the tender offer, we see the company’s stock as significantly undervalued, giving us a unique opportunity to drive shareholder value,” said Gregory S. Weishar, CEO of PharMerica.
PharMerica will provide an update regarding purchases made under the purchase program when it reports its results of operations for the quarter ended June 30, 2012.