PharMerica Corp., one of the nation's largest institutional pharmacy providers, saw revenue rise 7.6% to $470.2 million in the third quarter due in part to acquisitions and inflation on the costs of brand-name drugs, the company said.
The Louisville, Ky.-based company provides pharmacy services to nursing homes and long-term-care facilities. PharMerica officials told investors that the company had reported four consecutive quarters of organic growth, noting that its specialty pharmacy business reported double-digit growth in the quarter. Profit was $8.5 million in the third quarter of 2014, up from $6.2 million in the same quarter in 2013.
PharMerica in August said it closed an acquisition of Rx Advantage, which provides long-term-care pharmacy services in Alabama and Florida. Another deal, to buy Millennium Pharmacy Systems, which operates long-term-care pharmacies in the mid-Atlantic region, closed in September. The financial terms of both deals were not disclosed.
The Millennium deal, in particular, will boost market share for PharMerica in the regions where the company has a strong presence, officials said.
The company expects to make more deals.
“Looking to 2015, we will remain disciplined and opportunistic in pursuing acquisitions and maintain a 2015 acquisition goal of $100 million in annualized revenues,” PharMerica CEO Greg Weishar said in a statement.
Also in September, the company announced that it had filed a lawsuit against wholesaler AmerisourceBergen over allegations of a breach of contract. PharMerica officials said they expect the lawsuit to take 18 months or longer but it may be resolved sooner.
PharMerica raised its guidance for the year and expects revenue between $1.85 billion and $1.87 billion in 2014.
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