Express Scripts Inc (ESRX.O) cut its 2011 profit forecast as the U.S. pharmacy benefit manager projects filling fewer prescriptions because of the weak economy and increases spending, due in part to a contract dispute with drugstore chain Walgreen Co (WAG.N). Express Scripts also cited higher spending in anticipation of integrating its $29 billion purchase of rival Medco Health Solutions Inc (MHS.N) and greater competition in the marketplace "resulting in increased client demands and expectations." Express Scripts shares ticked up 1.6 percent after initially dropping 6 percent in premarket trading. The company previously warned investors of potentially weak prescription volume, causing some analysts to lower their profit forecasts and investors to gird for a revised forecast. The Express Scripts profit downgrade is the latest indication that Americans are cutting back on healthcare spending to save money because of uncertainty in the economy.
Express Scripts, Inc. is a pharmacy benefit management (PBM) operating in North America, offering a range of services to its clients, which include health maintenance organizations (HMOs), health insurers, third-party administrators, employers, union-sponsored benefit plans, workers? compensation plans and Government health programs. Shares of ESRX remained unchanged at $35.94. In the past year, the shares have traded as low as $34.47 and as high as $60.89. On average, 10485200 shares of ESRX exchange hands on a given day and today's volume is recorded at 112642.
Walgreen Co. (Walgreen) together with its subsidiaries, operates a drugstore chain in the United States. Shares of WAG remained unchanged at $33.03. In the past year, the shares have traded as low as $31.60 and as high as $47.11. On average, 8771990 shares of WAG exchange hands on a given day and today's volume is recorded at 0.
Medco Health Solutions, Inc. (Medco) is a healthcare company. Shares of MHS remained unchanged at $45.65. In the past year, the shares have traded as low as $44.60 and as high as $66.38. On average, 5700540 shares of MHS exchange hands on a given day and today's volume is recorded at 700.
Source
