UNITED STATES
                        SECURITIES EXCHANGE COMMISSION
                            Washington, D.C. 20549

-------------------------------------------------------------------------------


                                 SCHEDULE 13G

                   Under the Securities Exchange Act of 1934
                               (Amendment No. )

                            PHARMERICA CORPORATION
                            ----------------------
                               (Name of Issuer)


                    Common Stock, $.01 par value per share
                    --------------------------------------
                        (Title of Class of Securities)


                                   71714F104
                                ---------------
                                (CUSIP Number)


                                August 8, 2007
                             ---------------------
            (Date of Event which Requires Filing of this Statement)


      Check the  appropriate  box to designate  the rule  pursuant to which this
Schedule is filed:

                             [ ]   Rule 13d-1(b)

                             [X]   Rule 13d-1(c)

                             [ ]   Rule 13d-1(d)

* The remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for any  subsequent  amendment  containing  information  which  would  alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).


                         Continued on following pages
                              Page 1 of 15 Pages






                                 SCHEDULE 13G

CUSIP No.: 71714F104                                         Page 2 of 15 Pages

1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


        SAB CAPITAL PARTNERS, L.P.
................................................................................

2.      Check the Appropriate Box if a Member of a Group

        (a) [X]

        (b) [ ]
................................................................................
3.      SEC Use Only
................................................................................
4.      Citizenship or Place of Organization


        Delaware
................................................................................

Number of             5.        Sole Voting Power                  - 0 -
Shares               ..........................................................
Beneficially          6.        Shared Voting Power                1,293,619
Owned by Each        ..........................................................
Reporting             7.        Sole Dispositive Power             - 0 -
Person With          ..........................................................
                      8.        Shared Dispositive Power           1,293,619
................................................................................
9.      Aggregate Amount Beneficially Owned by Each Reporting Person


        1,293,619
................................................................................
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
................................................................................
11.     Percent of Class Represented by Amount in Row (9)

        4.31% based on 30,000,000 shares outstanding.
................................................................................
12.     Type of Reporting Person:

         PN






                                 SCHEDULE 13G

CUSIP No.: 71714F104                                         Page 3 of 15 Pages


1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


          SAB CAPITAL PARTNERS II, L.P.
................................................................................
2.      Check the Appropriate Box if a Member of a Group

        (a) [X]

        (b) [ ]
................................................................................
3.      SEC Use Only
................................................................................
4.      Citizenship or Place of Organization

        Delaware
................................................................................

Number of             5.        Sole Voting Power                  - 0 -
Shares               ..........................................................
Beneficially          6.        Shared Voting Power                28,379
Owned by Each        ..........................................................
Reporting             7.        Sole Dispositive Power             - 0 -
Person With          ..........................................................
                      8.        Shared Dispositive Power           28,379
................................................................................
9.      Aggregate Amount Beneficially Owned by Each Reporting Person

        28,379
................................................................................
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
................................................................................
11.     Percent of Class Represented by Amount in Row (9)

        0.09% based on 30,000,000 shares outstanding.
................................................................................
12.     Type of Reporting Person:

        PN






                                 SCHEDULE 13G

CUSIP No.: 71714F104                                         Page 4 of 15 Pages


1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


        SAB OVERSEAS MASTER FUND, L.P.
................................................................................
2.      Check the Appropriate Box if a Member of a Group

        (a) [X]

        (b) [ ]
................................................................................
3.      SEC Use Only
................................................................................
4.      Citizenship or Place of Organization

        Cayman Islands
................................................................................

Number of            5.         Sole Voting Power                  - 0 -
Shares               ..........................................................
Beneficially         6.         Shared Voting Power                539,266
Owned by Each        ..........................................................
Reporting            7.         Sole Dispositive Power             - 0 -
Person With          ..........................................................
                     8.         Shared Dispositive Power           539,266
................................................................................
9.      Aggregate Amount Beneficially Owned by Each Reporting Person

        539,266
................................................................................
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
................................................................................
11.     Percent of Class Represented by Amount in Row (9)

        1.8% based on 30,000,000 shares outstanding.
................................................................................
12.     Type of Reporting Person:

          PN





                               SCHEDULE 13G

CUSIP No.: 71714F104                                         Page 5 of 15 Pages


1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


        SAB CAPITAL ADVISORS, L.L.C.
................................................................................
2.      Check the Appropriate Box if a Member of a Group

        (a) [X]

        (b) [  ]
................................................................................
3.      SEC Use Only
................................................................................
4.      Citizenship or Place of Organization

        Delaware
................................................................................

Number of            5.         Sole Voting Power                  - 0 -
Shares               ..........................................................
Beneficially         6.         Shared Voting Power                1,861,264
Owned by Each        ..........................................................
Reporting            7.         Sole Dispositive Power             - 0 -
Person With          ..........................................................
                     8.         Shared Dispositive Power           1,861,264
................................................................................
9.      Aggregate Amount Beneficially Owned by Each Reporting Person

        1,861,264
................................................................................
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
................................................................................
11.     Percent of Class Represented by Amount in Row (9)

        6.2% based on 30,000,000 shares outstanding.
................................................................................
12.     Type of Reporting Person:

          OO





                                 SCHEDULE 13G

CUSIP No.: 71714F104                                         Page 6 of 15 Pages


1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


        SAB CAPITAL MANAGEMENT, L.P.
................................................................................
2.      Check the Appropriate Box if a Member of a Group

        (a) [X]

        (b) [ ]
................................................................................
3.      SEC Use Only
................................................................................
4.      Citizenship or Place of Organization

        Delaware
................................................................................

Number of            5.         Sole Voting Power                  - 0 -
Shares               ..........................................................
Beneficially         6.         Shared Voting Power                1,861,264
Owned by Each        ..........................................................
Reporting            7.         Sole Dispositive Power             - 0 -
Person With          ..........................................................
                     8.         Shared Dispositive Power           1,861,264
................................................................................
9.      Aggregate Amount Beneficially Owned by Each Reporting Person

        1,861,264
................................................................................
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
................................................................................
11.     Percent of Class Represented by Amount in Row (9)

        6.2% based on 30,000,000 shares outstanding.
................................................................................
12.     Type of Reporting Person:

        PN







                                 SCHEDULE 13G

CUSIP No.: 71714F104                                         Page 7 of 15 Pages


1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


        SAB CAPITAL MANAGEMENT, L.L.C.
................................................................................
2.      Check the Appropriate Box if a Member of a Group

        (a) [X]

        (b) [ ]
................................................................................
3.      SEC Use Only
................................................................................
4.      Citizenship or Place of Organization

        Delaware
................................................................................

Number of            5.         Sole Voting Power                  - 0 -
Shares               ..........................................................
Beneficially         6.         Shared Voting Power                1,861,264
Owned by Each        ..........................................................
Reporting            7.         Sole Dispositive Power             - 0 -
Person With          ..........................................................
                     8.         Shared Dispositive Power           1,861,264
................................................................................
9.      Aggregate Amount Beneficially Owned by Each Reporting Person

        1,861,264
................................................................................
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
................................................................................
11.     Percent of Class Represented by Amount in Row (9)

        6.2% based on 30,000,000 shares outstanding.
................................................................................
12.     Type of Reporting Person:

        OO





                                 SCHEDULE 13G

CUSIP No.: 71714F104                                         Page 8 of 15 Pages



1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


        SCOTT A. BOMMER
................................................................................
2.      Check the Appropriate Box if a Member of a Group

        (a) [X]

        (b) [ ]
................................................................................
3.      SEC Use Only
................................................................................
4.      Citizenship or Place of Organization

        United States of America
................................................................................

Number of            5.         Sole Voting Power                  - 0 -
Shares               ..........................................................
Beneficially         6.         Shared Voting Power                1,861,264
Owned by Each        ..........................................................
Reporting            7.         Sole Dispositive Power             - 0 -
Person With          ..........................................................
                     8.         Shared Dispositive Power           1,861,264
................................................................................
9.      Aggregate Amount Beneficially Owned by Each Reporting Person

        1,861,264
................................................................................
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
................................................................................
11.     Percent of Class Represented by Amount in Row (9)

        6.2% based on 30,000,000 shares outstanding.
................................................................................
12.     Type of Reporting Person:

        IN





                                                             Page 9 of 15 Pages


Item 1(a).        Name of Issuer:

                  PharMerica Corporation (the "Issuer").

Item 1(b).        Address of Issuer's Principal Executive Offices:

                  1901 Campus Place, Louisville, KY 40299.

Item 2(a).        Name of Person Filing:

                  This  Statement  is filed on behalf  of each of the  following
persons (collectively, the "Reporting Persons"):

                  i) SAB Capital Partners, L.P. ("SAB");

                  ii) SAB Capital Partners II, L.P. ("SAB II", and together with
SAB, the "Domestic Partnerships");

                  iii) SAB Overseas Master Fund, L.P. (the "Master Fund");

                  iv) SAB Capital Advisors, L.L.C. (the "General Partner");

                  v) SAB Capital Management, L.P. (the "Investment Manager");

                  vi) SAB Capital Management, L.L.C. (the "IMGP"); and

                  vii) Scott A. Bommer ("Mr. Bommer").

                  This Statement  relates to Shares (as defined herein) held for
the accounts of each of SAB, SAB II, and the Master  Fund.  The General  Partner
serves as the  general  partner  of each of the  Domestic  Partnerships  and the
Master Fund. The Investment  Manager serves as the investment manager of each of
the Domestic  Partnerships  and the Master Fund.  The IMGP serves as the general
partner of the Investment  Manager.  Mr. Bommer serves as the managing member of
each of the General Partner and IMGP.

                  Any disclosures  herein with respect to persons other than the
Reporting Persons are made on information and belief after making inquiry to the
appropriate party.

Item 2(b).        Address of Principal Business Office or, if None, Residence:

                  The address of the  principal  business  office of each of the
Reporting Persons is 767 Fifth Avenue, 21st Floor, New York, New York 10153.

Item 2(c).        Citizenship:

                  i)    SAB is a Delaware limited partnership;

                  ii)   SAB II is a Delaware limited partnership;





                                                            Page 10 of 15 Pages


                  iii) The  Master  Fund is a Cayman  Islands  exempted  limited
partnership;

                  iv)  The  General  Partner  is a  Delaware  limited  liability
company;

                  v) The Investment Manager is a Delaware limited partnership;

                  vi) The IMGP is a Delaware limited liability company; and

                  v) Mr. Bommer is a citizen of the United States of America.

Item 2(d).        Title of Class of Securities:

                  Common Stock, $.01 par value per share (the "Shares")

Item 2(e).        CUSIP Number:

                  71714F104

Item 3.           If This Statement is Filed Pursuant to  ss.ss.240.13d-1(b)  or
                  240.13d-2(b) or (c), Check Whether the Person Filing is a:

                  This Item 3 is not applicable.

Item 4.           Ownership:

Item 4(a).        Amount Beneficially Owned
                  As of August 17, 2007:

                  (a) SAB may be deemed to be the beneficial  owner of 1,293,619
Shares held for its account;

                  (b) SAB II may be deemed to be the beneficial  owner of 28,379
Shares held for its account;

                  (c) The Master Fund may be deemed to be the  beneficial  owner
of 539,266 Shares held for its account; and

                  (d) Each of the General Partner,  Investment Manager, IMGP and
Mr. Bommer may be deemed to be the beneficial owner of 1,861,264 Shares held for
the accounts of each of SAB, SAB II, and the Master Fund. This amount  includes:
A) 1,293,619  Shares held for the account of SAB; B) 28,379  Shares held for the
account  of SAB II;  and C) 539,266  Shares  held for the  account of the Master
Fund.

Item 4(b).        Percent of Class:

                  (a) As of August  17,  2007,  the  number of Shares SAB may be
deemed to be the  beneficial  owner of  constitutes  approximately  4.31% of the
total 30,000,000 Shares outstanding.





                                                            Page 11 of 15 Pages


                  (b) As of August 17, 2007,  the number of Shares SAB II may be
deemed to be the  beneficial  owner of  constitutes  approximately  0.09% of the
30,000,000 total Shares outstanding.

                  (c) As of August  17,  2007,  the  number of Shares the Master
Fund may be deemed to be the beneficial owner of constitutes  approximately 1.8%
of the 30,000,000 total Shares outstanding.

                  (d) As of August 17,  2007,  the number of Shares the  General
Partner, the Investment Manager, the IMGP and Mr. Bommer may be deemed to be the
beneficial  owner of  constitutes  approximately  6.2% of the  30,000,000  total
Shares outstanding.

Item 4(c).        Number of Shares of which such person has:

SAB:
----
(i) Sole power to vote or direct the vote:                                    0
(ii) Shared power to vote or direct the vote:                         1,293,619
(iii) Sole power to dispose or direct the disposition of:                     0
(iv) Shared power to dispose or direct the disposition of:            1,293,619

SAB II:
------
(i) Sole power to vote or direct the vote:                                    0
(ii) Shared power to vote or direct the vote:                            28,379
(iii) Sole power to dispose or direct the disposition of:                     0
(iv) Shared power to dispose or direct the disposition of:               28,379

The Master Fund:
---------------
(i) Sole power to vote or direct the vote:                                    0
(ii) Shared power to vote or direct the vote:                           539,266
(iii) Sole power to dispose or direct the disposition of:                     0
(iv) Shared power to dispose or direct the disposition of:              539,266

The General Partner, Investment Manager, IMGP and Mr. Bommer:
------------------------------------------------------------
(i) Sole power to vote or direct the vote:                                    0
(ii) Shared power to vote or direct the vote:                         1,861,264
(iii) Sole power to dispose or direct the disposition of:                     0
(iv) Shared power to dispose or direct the disposition of:            1,861,264






                                                            Page 12 of 15 Pages


Item 5.           Ownership of Five Percent or Less of a Class:

                  This Item 5 is not applicable.


Item 6.           Ownership  of More than  Five  Percent  on  Behalf of  Another
                  Person:

                  This Item 6 is not applicable.

Item 7.           Identification  and  Classification  of the  Subsidiary  Which
                  Acquired the Security  Being Reported on By the Parent Holding
                  Company:

                  This Item 7 is not applicable

Item 8.           Identification and Classification of Members of the Group:

                  See disclosure in Item 2 hereof.

Item 9.           Notice of Dissolution of Group:

                  This Item 9 is not applicable.

Item 10.          Certification:

                  By signing below each of the Reporting Persons certifies that,
to the best of their knowledge and belief, the securities referred to above were
not  acquired and are not held for the purpose of or with the effect of changing
or influencing the control of the issuer of the securities and were not acquired
and are not  held in  connection  with or as a  participant  in any  transaction
having that purpose or effect.






                                                            Page 13 of 15 Pages


                                   SIGNATURE

                  After  reasonable  inquiry and to the best of my knowledge and
belief,  I certify  that the  information  set forth in this  statement is true,
complete and correct.

Date: August 20, 2007

                                    /s/ Michael Casey
                                    -----------------------------------------
                                    Michael Casey, attorney-in-fact for Scott
                                    A. Bommer, individually and (a) as
                                    managing member of SAB Capital Advisors,
                                    L.L.C., for itself and as the general
                                    partner of (i) SAB Capital Partners, L.P.;
                                    and (ii) SAB Capital Partners II, L.P.;
                                    and (iii) SAB Overseas Master Fund, L.P.;
                                    and (b) as managing member of SAB Capital
                                    Management, L.L.C., for itself and as the
                                    general partner of SAB Capital Management,
                                    L.P.






                                                            Page 14 of 15 Pages


                                   EXHIBIT 1

                          JOINT ACQUISITION STATEMENT
                           PURSUANT TO RULE 13d-1(k)


                  The  undersigned  acknowledge  and  agree  that the  foregoing
statement  on Schedule  13G, is filed on behalf of each of the  undersigned  and
that all subsequent amendments to this statement on Schedule 13G, shall be filed
on behalf of each of the undersigned  without the necessity of filing additional
joint  acquisition  statements.  The undersigned  acknowledge that each shall be
responsible for the timely filing of such  amendments,  and for the completeness
and accuracy of the  information  concerning  him or it contained  therein,  but
shall not be responsible  for the  completeness  and accuracy of the information
concerning the others, except to the extent that he or it knows or has reason to
believe that such information is inaccurate.


DATED:  August 20, 2007



                  /s/ Michael Casey
                  --------------------------------------------------------
                  Michael Casey, attorney-in-fact for Scott A. Bommer,
                  individually and (a) as managing member of SAB Capital
                  Advisors, L.L.C., for itself and as the general partner
                  of (i) SAB Capital Partners, L.P.; and (ii) SAB Capital
                  Partners II, L.P.; and (iii) SAB Overseas Master Fund,
                  L.P.; and (b) as managing member of SAB Capital Management,
                  L.L.C., for itself and as the general partner of SAB
                  Capital Management, L.P.





                                                            Page 15 of 15 Pages


                                   EXHIBIT 2

                               POWER OF ATTORNEY

                  KNOW ALL MEN BY THESE PRESENT, that I, Scott A. Bommer, hereby
make,  constitute  and  appoint  each  of  Michael  Casey,  Brian  Jackelow  and
Alessandro De Giorgis, acting individually, as my agent and attorney-in-fact for
the purpose of  executing in my name,  (a) in my personal  capacity or (b) in my
capacity as managing member of or in other capacities with SAB Capital Advisors,
L.L.C.,  a Delaware  limited  liability  company,  and each of its affiliates or
entities  advised or  controlled  by me or SAB  Capital  Advisors,  L.L.C.,  all
documents,  certificates,   instruments,   statements,  filings  and  agreements
("documents")  to be  filed  with  or  delivered  to  any  foreign  or  domestic
governmental  or regulatory body or required or requested by any other person or
entity  pursuant  to  any  legal  or  regulatory  requirement  relating  to  the
acquisition,   ownership,  management  or  disposition  of  securities,  futures
contracts or other  investments,  and any other documents  relating or ancillary
thereto,  including,  without limitation, all documents relating to filings with
the United States Securities and Exchange Commission (the "SEC") pursuant to the
Securities Act of 1933, as amended,  or the Securities  Exchange Act of 1934, as
amended  (the  "Act"),  and the rules and  regulations  promulgated  thereunder,
including,  without  limitation:  (1) all documents  relating to the  beneficial
ownership  of  securities  required to be filed with the SEC pursuant to Section
13(d) or  Section  16(a)  of the Act,  including,  without  limitation:  (a) any
acquisition  statements  on  Schedule  13D or  Schedule  13G and any  amendments
thereto, (b) any joint filing agreements pursuant to Rule 13d-1(k),  and (c) any
initial  statements  of, or  statements of changes in,  beneficial  ownership of
securities  on Form 3, Form 4 or Form 5 and (2) any  information  statements  on
Form 13F required to be filed with the SEC pursuant to Section 13(f) of the Act.

                  All past acts of these attorneys-in-fact in furtherance of the
foregoing are hereby ratified and confirmed.

                  This Power of Attorney  shall remain in effect until  revoked,
in writing, by the undersigned.

                  IN WITNESS WHEREOF, the undersigned has executed this Power of
Attorney, this 9th day of August 2006.


                                /s/ Scott A. Bommer
                               ------------------------------------
                               Scott A. Bommer