PharMerica Raises 2014 Outlook - Quick Facts

(RTTNews) - PharMerica Corp. (PMC), a national provider of institutional, specialty home infusion, hospital and oncology pharmacy services, raised its full year 2014 guidance.

The company increased its 2014 adjusted earnings per share outlook to a range of $1.58 - $1.62 from the prior estimate of $1.47 - $1.52 per share.

The company also raised its 2014 revenue guidance to a range of $1.76 billion - $1.80 billion from the previous outlook of $1.73 billion - $1.78 billion.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.52 per share and revenues of $1.77 billion for fiscal 2014. Analysts' estimates typically exclude special items.

PharMerica's decision to raise its 2014 guidance reflected positive momentum across the business, as well as the completed acquisition of three institutional pharmacies in Texas. Although financial terms of the transaction were not disclosed, PharMerica expects the acquisition to generate approximately $60 million of annualized revenue and be immediately accretive to earnings in 2014.

With this acquisition, PharMerica will have achieved its goal of completing acquisitions that generate at least $100 million of annualized sales, in the aggregate, in 2014. PharMerica will again target acquisitions that generate at least $100 million of annualized sales, in the aggregate, in 2015.

The company noted that its 2014 guidance did not previously include the effect of 2014 acquisitions. PharMerica's revised 2014 guidance now reflects the Company's acquisitions in 2014, which, in the aggregate, generate approximately $100 million of annualized sales.

Separately, PharMerica also announced that it has commenced litigation against AmerisourceBergen, the Company's wholesale supplier of pharmaceutical products. The litigation alleges breach of contract and seeks a declaratory judgment from the Court to compel Amerisource to comply with its contractual obligations.

PharMerica noted that it is confident in the merits of its case, believes the facts clearly support its position, and looks forward to the successful resolution of this matter.