Kindred breaks with PharMerica, plans to partner with Omnicare
Form 8-K documents filed June 21 confirmed that Kindred does not plan to renew its PharMerica contract for skilled nursing services after it lapses Dec. 31. Under a separate contract, PharMerica will continue to provide pharmacy management for Kindred hospitals through 2014.
Kindred's nursing facilities accounted for 11.5% of PharMerica's revenue in 2012, according to the pharmacy's annual report. Upon news of the contract loss, PharMerica share prices slid, and a Bank of America analyst lowered the price target on the company from $18 to $17.
This is another setback for PharMerica, which lost other major contracts when Golden Living created pharmaceutical services company AlixaRx last fall.