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Medco Facts and Figures

By Mel Duvall  |  Posted 2005-05-04 Print this article Print
 
 
 
 
 

Big companies think automated mail-order pharmacies like Medco help cure rising drug costs. That remedy won't make retail giants like Walgreens and CVS feel better.




Medco Health Solutions Base Case



Headquarters: 100 Parsons Pond Drive, Franklin Lakes, NJ 07417

Phone: (201) 269-3400

Business: The largest pharmacy benefit manager and operator of a mail-order pharmacy in the U.S.

Chief Information Officer: Mark Halloran

Financials in 2004: $35 billion in revenue, $482 million profit.

Challenges: Fight back against increased competition from traditional retail drugstores and convince more customers to place prescription orders online.

Baseline Goals:

  • Grow mail-order prescriptions to 96 million in 2005, from 88 million in 2004.

  • Increase refill orders online by 23% to 21 million in 2005, from 17 million in 2004.

  • Increase profit per prescription from $1.83 in 2004 by selling more generic drugs, which offer 18% margin over brand-name.






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Contributing Editor
Mel Duvall is a veteran business and technology journalist, having written for a variety of daily newspapers and magazines for 17 years. Most recently he was the Business Commerce Editor for Interactive Week, and previously served as a senior business writer for The Financial Post.

 
 
 
 
 
 
 
 
 
 
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