Pharmacy Times

HIGHER GENERIC DRUG SALES CREDITED FOR MEDCO PROFIT SURGE


Officials at Medco Health Solutions credited a record-high generic-drug dispensing rate for a strong upsurge in the company?s profitability. Medco?s total gross margin of 6.4% increased 0.9 percentage points, compared with the 5.5% reported in the second quarter of 2006. This higher gross margin is ?substantially attributable to a record generic-dispensing rate of 58.9%,? company officials said. The recordhigh generic-dispensing rate?a 5-point gain over the previous quarter?reduced Medco?s gross sales volume but helped to boost the company?s earnings by 22%.