More people with insurance could make Medco a net beneficiary of health-care reform.
The managed-care industry continues to consolidate. Larger managed-care customers have bargaining power over Medco and might have the scale to bring PBM services in-house.Medco's biggest customer, UnitedHealth, accounted for 21% of the company's revenue in 2008. UnitedHealth could potentially bring
New customer wins and market growth drive higher revenue and margin expansion for AmerisourceBergen.
Cardinal Health is a middleman caught between increasingly powerful customers and suppliers.
Omnicare OCR reported adequate third-quarter earnings Thursday, and we are impressed by the company's overall performance through the first nine months of the year. With top-line growth fixed, Omnicare has made some strides to improve margins through cost initiatives. We are leaving our fair value
We are maintaining our fair value estimate for McKesson MCK after the company reported solid fiscal second-quarter results. Management once again raised its full-year earnings outlook, bringing it more in line with the projection incorporated in our model. Operating costs declined 4% from the