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About Pharmerica Corporation

The only time you'll see PharMerica's products is when a nurse hands you a pill in a paper cup. As the country's second-largest institutional pharmacy operator (behind Omnicare), the firm provides purchasing, packaging, and dispensing of drugs to hospitals, nursing homes, assisted living facilities, and other long-term care settings. PharMerica operates about 95 institutional pharmacies, 20 specialty home infusion pharmacies, and five specialty oncology pharmacies, from which it packages and delivers medications in unit doses (rather than in bulk) to customers in 45 states. It also provides consulting and monitoring services of drug usage to help care facilities comply with government regulations. Investment firm KKR and minority investor Walgreens Boots Alliance bought PharMerica for some $1.4 billion in late 2017.

Change in Company Type

In mid-2017, PharMerica agreed to be taken private by a company controlled by KKR for $1.4 billion. Pharmacy giant Walgreens Boots Alliance gained a minority stake in the firm through the transaction. (Walgreens competitor CVS Health owns PharMerica competitor Omnicare.) Under the new ownership, PharMerica has added resources to use for expanding its operations.


PharMerica operates through three primary segments -- Institutional Pharmacy, Specialty Infusion Services, and Specialty Oncology Pharmacy.

The Institutional Pharmacy segment accounts for a majority of sales. It serves residents and patients in hospitals, skilled nursing homes, nursing centers, assisted living facilities, and other long-term care settings.

The Specialty Infusion Services segment provides complex pharmaceuticals and clinical services to homebound and/or hospice patients. Through this business, PharMerica offers high-touch services to patients who have acute or chronic conditions.

The Specialty Oncology Pharmacy segment dispenses oncology drugs and provides care management and related services to patients, cancer centers, and hospitals.

PharMerica offers a number of services through online portals including help with medication management (ordering, refills, discontinues, returns), regulatory updates, formulary guides, billing, reporting, and management and utilization reports. It also offers patient medical record management services.

Geographic Reach

PharMerica operates facilities in approximately 40 states. Specialty infusion services are offered in 16 states, while specialty oncology services are offered in 46 states.

The company's largest operating markets include Arizona, Texas, California, Florida, Pennsylvania, Tennessee, and Hawaii.

Sales and Marketing

PharMerica receives nearly half of its annual pharmacy services revenue from commercial Medicare Part D Plans. Medicare and Medicaid combined account for about 10%. Other payers include institutional health care providers (20%), commercial insurance companies, private payers, and contracted providers. PharMerica keeps a close eye on changes to federal health care laws and insurance reimbursement policies which have the potential to affect its bottom line.

The Institutional Pharmacy segment's largest customer category is skilled nursing facilities. Other customers include assisted-living centers, hospitals, homebound patients, and long-term alternative care providers.

The company's products and services are promoted through a direct sales force.

Financial Performance

PharMerica's revenue have been rising modestly since 2013. In fiscal 2016, revenue increased 3% to $2.1 billion; that increase was driven by expansion through acquisitions, growth in the specialty pharmacy business, and higher brand-name drug prices. Net income, which jumped significantly in 2015, fell 38% to $21.6 million in 2016 as expenses including cost of goods sold increased.

Cash flow from operations rose 66% to $30.8 million that year. Positive changes in inventory and other assets and liabilities helped boost the cash flow.


PharMerica intends to take advantage of two national trends: the increase in medication usage and the aging of the US population. By consolidating in what has historically been a highly fragmented market, the company has secured its position as one of the largest institutional pharmacy providers in the country. Its size helps it operate more inexpensively, both in terms of securing favorable pharmaceutical price and delivering products at a competitive prices.

The company has also worked to diversify operations, entering markets other than its core long-term care operations. Such markets include specialty pharmacy, home infusion, and hospital pharmacy. To gain new clients and broaden its business with existing clients, PharMerica works to expand its product and service offerings into new areas. It also invests in its digital offerings to keep up with growing demand for such services.

The company expands geographically by acquiring smaller, regional competitors that operate in target markets.

Over the past few years the company has been beefing up the amount of generic drugs it dispenses as a way to reduce costs and capture more customers. More than 85% of the prescription drugs PharMerica dispensed in 2016 were generic (compared to roughly 70% in 2008). This number is likely to increase as more pharmaceutical companies lose exclusivity patents and additional generics are introduced to the market. Historically, selling generics is a double-edged sword since a shift from brand to generic decreases PharMerica's revenue while improving gross margins.

In 2015, PharMerica entered into a drug sourcing and distribution partnership with Cardinal Health that will extend through mid-2018.

Mergers and Acquisitions

In 2015 Pharmerica added to subsidiary Amerita's specialty home infusion operations with the acquisition of Coastal Pharmaceutical Services (dba InfusionRx) for an undisclosed amount. That deal broadened Amerita's market presence, particularly in Southern California. Also in 2015, PharMerica acquired McGuire Group Pharmacy, building on its presence in upstate New York; and Luker Pharmacy Management, which primarily operates in Texas. Other deals included the purchase of Integrated Pharmacy Network (Michigan) and Alternacare Infusion Pharmacy (Kansas).

In 2016, the company acquired four long-term care businesses and two infusion businesses for some $50.3 million.

Pharmerica Corporation

Louisville, KY 40299-2308
Phone: 1 (502) 627-7000


Employer Type: Publicly Owned
EVP and CFO: Robert E. Dries
Chairman: Geoffrey G. Meyers
CEO: Gregory S. Weishar
Employees (This Location): 10
Employees (All Locations): 52,048

Major Office Locations

Louisville, KY

Other Locations

Daphne, AL
Casa Grande, AZ
Phoenix, AZ
Tucson, AZ
Fresno, CA
Mountain View, CA
Riverside, CA
Sacramento, CA
Fort Lauderdale, FL
Jacksonville, FL
Largo, FL
Tampa, FL
Lihue, HI
Meridian, ID
Bensenville, IL
Glasgow, KY
Columbia, MD
Portland, ME
Grand Rapids, MI
Midland, MI
Goldsboro, NC
Greensboro, NC
Mint Hill, NC
Omaha, NE
Concord, NH
Fairfield, NJ
Cheektowaga, NY
Worthington, OH
Greensburg, PA
Hermitage, PA
King Of Prussia, PA
Charleston, SC
Easley, SC
Franklin, TN
Memphis, TN
Lubbock, TX
Milwaukee, WI
Huntington, WV