FRANKLIN LAKES, N.J., Nov. 29 /PRNewswire-FirstCall/ -- Medco Health Solutions, Inc. (NYSE: MHS) today announced that its Board of Directors has approved a two-for-one stock split. The stock split, effected in the form of a dividend, will entitle all shareholders of record at the close of business on Jan. 10, 2008 to receive one additional share of Medco common stock for each share held on that date. The stock dividend will be distributed on Jan. 24, 2008.
Since becoming a public company in August 2003, Medco's stock has appreciated approximately four-fold.
"By concentrating our resources on breakthrough innovations that deliver clinical and financial value to our clients and members, we have, in turn, delivered a consistent track record of building wealth for our shareholders," said David B. Snow Jr., Medco chairman and CEO. "Following this strategy that leverages key growth drivers -- including generics, mail order, specialty pharmacy, and Medicare, and our success in driving net-new business -- we are confident that we will continue to grow shareholder value."
Medco Health Solutions, Inc. (NYSE: MHS) is the nation's leading pharmacy benefit manager based on its 2006 total net revenues of more than $42 billion. Medco's prescription drug benefit programs, covering one in five Americans, are designed to drive down the cost of pharmacy health care for private and public employers, health plans, labor unions and government agencies of all sizes, and for individuals served by the Medicare Part D Prescription Drug Program. Medco, the world's most advanced pharmacy(TM) has created Therapeutic Resource Centers(TM) that are staffed with hundreds of specialist pharmacists trained and certified in specific chronic and complex conditions and have expertise in the medications that treat them. Medco is the nation's largest diabetes pharmacy care practice based on covered lives with the 2007 acquisition of the Liberty Medical, and the largest specialty pharmacy based on net revenues with the 2005 acquisition of Accredo Health, Incorporated. Medco is the highest-ranked independent pharmacy benefit manager on the 2007 Fortune 500 list. On the Net: http://www.medco.com.
This press release contains "forward-looking statements" as that term
is defined in the Private Securities Litigation Reform Act of 1995. These
statements involve risks and uncertainties that may cause results to differ
materially from those set forth in the statements. No forward-looking
statement can be guaranteed, and actual results may differ materially from
those projected. We undertake no obligation to publicly update any forward-
looking statement, whether as a result of new information, future events or
otherwise. Forward-looking statements are not historical facts, but rather
are based on current expectations, estimates, assumptions and projections
about the business and future financial results of the pharmacy benefit
management ("PBM") and specialty pharmacy industries, and other legal,
regulatory and economic developments. We use words such as "anticipates,"
"believes," "plans," "expects," "projects," "future," "intends," "may,"
"will," "should," "could," "estimates," "predicts," "potential,"
"continue," "guidance" and similar expressions to identify these
forward-looking statements. Medco's actual results could differ materially
from the results contemplated by these forward-looking statements due to a
number of factors. These factors include:
-- Competition in the PBM, specialty pharmacy and the broader health care
industry is intense and could impair our ability to attract and retain
-- Failure to retain key clients could result in significantly decreased
revenues and could harm our profitability;
-- If we do not continue to earn and retain purchase discounts and rebates
from manufacturers at current levels, our gross margins may decline;
-- Our acquisition activity increased recently and if we are unable to
effectively integrate acquired businesses into ours, our operating
results may be adversely affected;
-- If we fail to comply with complex and rapidly evolving laws and
regulations, we could suffer penalties, or be required to pay
substantial damages or make significant changes to our operations;
-- Government efforts to reduce health care costs and alter health care
financing practices could lead to a decreased demand for our services
or to reduced profitability;
-- Failure to execute our Medicare Part D prescription drug benefits
strategy could adversely impact our business and financial results;
-- PBMs could be subject to claims under ERISA if they are found to be a
fiduciary of a health benefit plan governed by ERISA;
-- Pending litigation could adversely impact our business practices and
have a material adverse effect on our business, financial condition,
liquidity and operating results;
-- We are subject to corporate integrity agreements and noncompliance may
impede our ability to conduct business with the federal government;
-- Legislative or regulatory initiatives that restrict or prohibit the PBM
industry's ability to use patient identifiable medical information
could limit our ability to use information that is critical to the
operation of our business;
-- Our specialty pharmacy business is dependent on our relationships with
a limited number of biopharmaceutical suppliers and the loss of any of
these relationships could significantly impact our ability to sustain
or increase our revenues;
-- Our ability to grow our specialty pharmacy business could be limited if
we do not expand our existing base of drugs or if we lose patients;
-- Our specialty pharmacy business and Medicare Part D offerings expose us
to increased credit risk;
-- Changes in industry pricing benchmarks could adversely affect our
-- The terms and covenants relating to our existing indebtedness could
adversely impact our financial performance;
-- Prescription volumes may decline, and our net revenues and
profitability may be negatively impacted, if products are withdrawn
from the market or if increased safety risk profiles of specific drugs
result in utilization decreases;
-- We may be subject to liability claims for damages and other expenses
that are not covered by insurance;
-- The success of our business depends on maintaining a well-secured
pharmacy operation and technology infrastructure and failure to execute
could adversely impact our business;
-- We could be required to record a material non-cash charge to income if
our recorded intangible assets are impaired, or if we shorten
intangible asset useful lives; and,
-- Anti-takeover provisions of the Delaware General Corporation Law
("DGCL"), our certificate of incorporation and our bylaws could delay
or deter a change in control and make it more difficult to remove
incumbent officers and directors.
The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other uncertainties and potential events described in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the Securities and Exchange Commission.
|SOURCE Medco Health Solutions, Inc.|
Copyright©2007 PR Newswire.
All rights reserved