"With record-setting performance across our core growth drivers, including particular strength from mail-order volumes, generics and specialty, as well as continuing strong new business growth and renewals, Medco remains on track to achieve its 27 to 29 percent earnings per share growth expectations for 2008. Our 2008 annualized new-named sales grew to $5.1 billion from the previously reported $4.9 billion and retention rates remained at a historically high 98 percent. Additionally, 2008 net-new sales climbed to $4.6 billion, up significantly from the previous $4.0 billion," said David B. Snow Jr., Medco chairman and CEO.
"The recently announced new and aligned agreement with UnitedHealth Group through the end of 2012 provides opportunities for both Medco and UnitedHealth Group, advancing our relationship with this important client. Also, our recently announced international initiatives in Sweden and Germany provide long-term opportunities that extend our technological and operational expertise beyond the United States. These initiatives are part of a broader, multifaceted growth strategy that holds great promise for the future," Snow said.
Richard J. Rubino, chief financial officer, added: "Our strong
first-quarter 2008 EPS growth is particularly satisfying in light of the
first-quarter 2007 benefit from the short-term availability of generic
Plavix(R), which made first-quarter 2007 the strongest quarter in 2007. In
the first quarter of 2008 we successfully installed significant new
accounts such as FEP, State of New York, and HIP of Greater New York, and
incurred related start-up costs amounting to approximately $8 million or
$0.01 per share. Also, our first-quarter demonstrated a strong growth rate
despite a non-recurring interest rate swap write-off associated with our
March 2008 senior notes issuance, amounting to $9.8 millio
|SOURCE Medco Health Solutions, Inc.|
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