LOUISVILLE, Ky. (July 3, 2012) — PharMerica Corp. (NYE: PMC) shares rose today to as high as $11.51 after the company announced Monday that it is increasing its existing share purchase program to allow the company to purchase up to $25 million of its common stock in the open market. The stock closed at $11.35.
The national provider of institutional pharmacy and hospital pharmacy management services said the share-buyback program will be funded from available cash.
A week ago, the stock was trading at around $10.60. It peaked at $11.05 Monday.
The amount and timing of the purchases will be determined by the PharMerica’s management and will depend on a variety of factors including price, corporate and regulatory requirements, capital availability and other market conditions, according to a press release from the company. 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,” said Gregory S. Weishar, chief executive officer of the company. “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.”
PharMerica will provide an update on the purchases made under the purchase program when it reports its results of operations for the quarter ended June 30.