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NEW YORK (TheStreet) -- Shares of PharMerica (PMC)  jumped 13.48% to $25.59 on heavy trading volume late-afternoon Wednesday as the Louisville, KY-based pharmacy manager is exploring strategic alternatives, including a possible sale.

PharMerica is working with Bank of America (BAC) and UBS (UBS) on an acquisition process that's attracted interest from private equity firms, sources said, according to Reuters. It's uncertain whether the company will move forward with a sale. 

The company received an unsolicited takeover bid from rival pharmacy company Omnicare in 2011, but the FTC halted the buyout on antitrust grounds. Omnicare was later purchased by CVS Health (CVS) for $13 billion in 2015. 

PharMerica offers pharmacy services, such as prescription dispensing, to approximately 15% of U.S. nursing homes, Reuters reports. It has been under pressure recently as government payers such as Medicare have cut payments for some types of care. 

About 2.02 million of PharMerica's shares changed hands today vs. its average volume of 241,795 shares per day.

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TheStreet Recommends

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate PHARMERICA CORP as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

You can view the full analysis from the report here:


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