FRANKLIN LAKES, N.J.,
May 24, 2011 /PRNewswire/ -- Medco
Chairman and CEO David B. Snow Jr.
today recapped a string of accomplishments in 2010 for attendees at
the company's annual shareholders' meeting and offered a vision for
a future in which Medco plays a pivotal role in the success of
healthcare reform. "There are moments in history when multiple
factors align to fuel positive change," he said. "We're living in
one of those moments; Medco is seizing this opportunity for its
clients and patients as we advance high-quality healthcare through
innovation."
(Logo: http://photos.prnewswire.com/prnh/20100609/MEDCOLOGO)
Snow brought shareholders a vivid sense of the abundant
opportunities that lie ahead for Medco and its clients in all areas
of its business, leading with the potential to reap unprecedented
savings from a historical wave of first-time generic drugs
beginning late this year. Snow highlighted Medco's ability to
leverage its wired pharmacy to drive even greater client savings
and clinical benefits and utilize its vast prescription drug and
medical databases to help patients and physicians close 2.3 million
gaps in care in 2010 through its robust set of sophisticated
clinical tools designed to reduce overall healthcare costs.
The Medco Medicare Prescription Drug Plan (PDP)® is the first
and only national plan to earn a 5-Star overall rating from the
Center for Medicare and Medicaid Services – a designation for
providing members with the highest overall service quality and
performance. The company also expanded its comparative
effectiveness and outcomes research capabilities with the
acquisition of United BioSource Corporation, and its expanded
genomic research and health management capabilities through the
Medco Research Institute and its acquisition of DNA Direct,
initiatives designed to drive further value to clients and the
healthcare system.
"By any measure, 2010 was a year of growth that delivered solid
returns to investors," said Snow. "But investors also recognize
that Medco's vision is long-term. We bring game-changing,
system-transforming capabilities to the equation. Since becoming a
public company in 2003 we have redefined the modern pharmacy
benefit manager (PBM), and we are now executing on an ambitious,
expansive and meticulously detailed plan as we bring to life the
concept of 'making medicine smarter' through the next decade."
In addition to delivering nearly $3.7
billion in generic savings to clients and members, the
company's 2010 financial results strongly affirmed the
effectiveness of Medco's strategy and the agility and
responsiveness of its operations. In 2010:
- GAAP diluted EPS increased 21.1 percent to a record
$3.16 from $2.61 in 2009;
- Total net revenues increased 10.3 percent to a record of
$66.0 billion;
- Gross margins increased 7.7 percent to a record $4.34 billion;
- EBITDA increased 8.1 percent to a record $2.97 billion, yielding a full-year record of
$3.11 per adjusted prescription;
Other records Medco logged in 2010 included: a mail-order
prescription volume increase of 6.5 percent to 109.8 million (with
generic volumes increasing 13.4 percent to a record 67.6 million);
a generic dispensing rate increase of 3.5 percentage points to a
full-year 71.0 percent; and an increase in specialty pharmacy
revenues of 19.1 percent to over $11.3
billion – all delivering significant savings to Medco's
clients and patients.
The company's client-retention rates and new sales also spoke
clearly to the value of its services. Annualized new-named and
net-new sales for 2010 each reached $5.3
billion, and the client retention rate, as measured by drug
spend, exceeded 99 percent.
"Medco is a force for long-term, positive change in healthcare,"
concluded Snow. "Whether you gauge that by client savings,
healthcare system effectiveness or shareholder value, it adds up to
our ultimate aim and our noble cause – improved health for patients
and lower overall costs for payors."
Voting Results
According to preliminary voting results released at the meeting,
Medco shareholders re-elected nine members to its Board of
Directors. Shareholders also ratified the appointment of
PricewaterhouseCoopers LLP as the company's independent auditors
for fiscal year 2011; approved amendments to the Company's
Certificate of Incorporation; approved the Amended and Restated
Stock Incentive Plan; approved, on an advisory basis, a proposal
regarding the compensation of the Company's named executive
officers; and approved, on an advisory basis, the holding of a
shareholder advisory vote annually on the compensation of the
Company's named executive officers. Shareholders also voted against
a shareholder proposal regarding executive equity holding
requirements.
Webcast Information
A replay of the webcast of Medco's Annual Meeting of
Shareholders is available through the Investor Relations section on
Medco's Web site, www.medcohealth.com/investor. Slides associated
with the presentation made during the meeting will also be
available on the site.
RealPlayer or Windows Media Player is required to listen to the
webcast. Free downloads of both players are available at the
webcast site. The webcast will be available for replay for one year
following the presentation.
About Medco
Medco Health Solutions, Inc. (NYSE: MHS) is pioneering the
world's most advanced pharmacy® and its clinical research
and innovations are part of Medco making medicine smarter™
for approximately 65 million members.
With more than 20,000 employees worldwide dedicated to improving
patient health and reducing costs for a wide range of public and
private sector clients, and 2010 revenues of $66 billion, Medco ranks 34th on the 2011 Fortune
500 list and is named among the world's most innovative, most
admired and most trustworthy companies.
For more information, go to http://www.medcohealth.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 in this press release
should be evaluated together with the risks and uncertainties that
affect our business, particularly those mentioned in the Risk
Factors section of the Company's Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q filed with the Securities and
Exchange Commission.
SOURCE Medco Health Solutions, Inc.