Pharmacy News: Ahead of the Bell: Medco says CalPERS ends talks
Ahead of the Bell: Medco says CalPERS ends talks
A Jefferies & Co. analyst said Thursday that Medco Health Solutions Inc. will lose about $500 million in annual revenue after a contract with a California public workers union expires, but added that the loss will have a “minuscule” effect on the pharmacy benefits manager.
Medco said Wednesday that the California Public Employees’ Retirement System, or CalPERS, will not renew a contract with the company, which is based in Franklin Lakes, N.J. Their current contract will end Jan. 1, 2012. Medco said the contract would not have a significant effect on its results.
But analyst Arthur Henderson said shares of Medco and other pharmacy benefits managers are compelling. The industry is preparing for a wave of pharmaceutical patent expirations that will bring generic versions of drugs like Lipitor and Plavix to the market, expanding profits for Medco and competitors like Express Scripts Inc. and CVS Caremark Corp.
Henderson said the loss of the contract will reduce Medco’s profit by about 7 cents per share in 2012. He expects Medco to earn about $5 per share that year, which means the contract loss is not a major negative for the company. He kept a “Buy” rating on the stock, with a price target of $73 per share.
Medco shares have traded between $43.45 and $66.70 in the last year, and they finished at $56.23 Wednesday.
Supply issues ‘embedded’ in pharmacy workload, says NPA
Medicines supply problems have become so severe that they are now simply “embedded in the working lives of pharmacists”, the NPA has warned.
The association said stock shortages had become so routine that fewer pharmacists were now complaining about them, although many still reported difficulties obtaining medicines.
Other industry leaders praised pharmacists “sheer perseverance” in sourcing medicines, but said the sector should push for supply chain improvements.
“Initially we had many calls expressing utter disbelief at the hoops that need to be jumped through to obtain stock,” said Leyla Hannbeck, head of information at the NPA.
She said the association had noticed a slight decline in the number of calls from pharmacists complaining about shortages, but that this was not an indication that things were getting better. “The drop off can be explained by the fact that dealing with supply problems has become so embedded in the working lives of pharmacists,” she said.
And the association now received “a huge number of calls from pharmacies who are desperately looking for alternative products”, she said.
Ms Hannbeck urged pharmacists to continue reporting supply problems, and Martin Sawer, executive director of the BAPW, said it was vital that pharmacists didn’t accept the problems.
“Most pharmacists are spending time each week phoning around to obtain medications,” he said. Even if contract payments covered this work, he said it seemed “crazy” that this was being embedded in pharmacists’ workload.
The Royal Pharmaceutical Society added to the criticism of the supply chain. “Were it not for the sheer hard work and perseverance of pharmacists in sourcing medicines for patients, many would have to wait far longer than they do already,” a spokesperson said. “It should be a matter of regret to all parties involved in the medicines supply chain that problems are continuing.”
Catalyst Health Solutions Shares Creeping Higher, Up 1.3% (CHSI)
Mar 18, 2011 (SmarTrend(R) Market Surveillance via COMTEX) — Catalyst Health Solutions (CHSI) is one of today’s notable stocks on the rise, up 1.3% to $54.04. The S&P is currently trading 0.8% higher to 1,284 and the Dow Jones Industrial Average is trading 1% higher to 11,892.
Catalyst Health Solutions is in SmarTrend’s Pharmacy Services industry and this industry is currently in an Uptrend according to our research. We are monitoring many other stocks on the move within this industry.
In the last five trading sessions, the 50-day MA has climbed 1.2% while the 200-day MA has risen 0.76%.
In the past 52 weeks, shares of Catalyst Health Solutions have traded between a low of $31.40 and a high of $56.18 and are now at $54.04, which is 72% above that low price.
SmarTrend currently has shares of Catalyst Health Solutions in an Uptrend and issued the Uptrend alert on February 17, 2011 at $45.98. The stock has risen 16.1% since the Uptrend alert was issued.
Managed Health Care Associates, Inc. (MHA) Hosts Eighth Annual Long Term Care Business Summit
Managed Health Care Associates, Inc. (MHA), a leading health care service company focused on alternate site health care providers, is hosting its 8th Annual MHA Business Summit for Long Term Care Pharmacies and other Long Term Care stakeholders on March 17th-18th at ARIA at CityCenter in Las Vegas, Nevada.
The two-day Summit will focus on the developing landscape facing the LTC pharmacy industry under the new Healthcare Reform Act. There will be formal sessions related to the regulatory, legal, and financial issues within the LTC pharmacy space, with an emphasis on proactive strategies to maximize opportunities in this changing healthcare setting including a summary of the results of the 4th Annual MHA Long-Term Care Member Survey. The 2011 Business Summit will have two keynote speakers – The Honorable William H. Frist, MD, the 18th Majority Leader of the United States Senate and John F. Crowley, biotechnology pioneer and Chairman & CEO of Amicus Therapeutics.
Michael J. Sicilian, MHA President commented, “When we started this conference eight years ago we recognized the need for an industry meeting dedicated to our members and stakeholders that would assist them in the sharing of ideas and ways to improve the respective industry. The meeting has evolved into one of the best attended and most comprehensive events focused on the day to day challenges facing the LTC industry. We are expecting record attendance with over 700 participants representing the critical industry stakeholders including LTC pharmacies, pharmaceutical manufacturers, medical product and service suppliers, drug wholesalers and Prescription Drug Plans. Our members continue to rely on MHA to gain better insight on the most important topics impacting the LTC Pharmacy industry as they participate in open forum discussions with colleagues and business partners. Due to the success of this annual event, MHA will be expanding the meeting in 2012 to include participation for the rest of our alternate site health care provider members with dedicated sessions focused on infusion, specialty pharmaceuticals and business solutions. Within the coming weeks we plan to release details on the 9th Annual MHA Summit to be held March 1st – March 2nd, 2012 at ARIA at CityCenter in Las Vegas, Nevada.”