Lidge injured the same knee he had surgery on back in October
Lidge injured the same knee he had surgery on back in October. Phillies manager Charlie Manuel said that Tom Gordon will close if Lidge is not ready for their opening day game against the Washington Nationals on March 31st Lidge was optimistic about his injury and his recovery time. “Right now, if we had to do this during the season, then obviously you’re missing a big chunk of the season,” Lidge said. “I definitely need a few bullpen sessions, but I feel like my arm is ahead of schedule so after a week I should be able to throw again.” This article is also featured on FrontRowSportsReport : Sports Blog. (Refiles to fix stock symbol (RIC) format in paragraph 1) Stocks | Mergers & Acquisitions | Global Markets * Q1 EPS 63 cents ex items vs 62-cent Wall St estimate * Backs 2009 profit forecast * Prescription volume up 9.4 percent * Shares fall 3 pct (Adds CFO comment from interview, updates shares) By Lewis Krauskopf and Bill Berkrot NEW YORK, April 29 (Reuters) – Medco Health Solutions Inc(MHS.N) said on Wednesday that quarterly net income rose,helped by new business, but the pharmacy benefit manager didnot raise its full-year forecast, disappointing someinvestors. Analysts suggested disappointment over the forecast andconcern that the company’s burgeoning cash pile would lead to apotentially disruptive acquisition were putting pressure on thestock, which was down 3 percent. “They had a good quarter, but they didn’t do anything withguidance,” said Jefferies & Co analyst Arthur Henderson.
“Iassume people hoped they might raise it.” On a conference call with analysts and investors, Medcoofficials said the company had $1.8 billion of cash at the endof the first quarter and expected that to grow by the end of2009 It also said it would be open to a major acquisition. “Any time there’s a big acquisition, people worry aboutintegration risk,” Henderson said. Gabelli & Co analyst Jeff Jonas said “fear of a big deal”could be driving down the stock. But Chief Financial Officer Richard Rubino said thecompany’s healthy cash position does not mean a big acquisitionis imminent. “It’s good to have when there’s very little liquidity inthe market,” Rubino said in a telephone interview. And, headded, “if there was an (acquisition) opportunity that woulddrive long-term shareholder value, at least we have the powderto take advantage of it.” Medco’s net income rose 8 percent to $291 million, or 58cents per share, from $270.2 million, or 50 cents per share, ayear earlier.
Excluding items, Medco earned 63 cents per share, 1 centmore than analysts’ average forecast, according to ReutersEstimates Revenue jumped 14.4 percent to $14.83 billion. “For any company to have a record revenue quarter in thisday and age is pretty phenomenal,” Rubino said. Medco continues to project 2009 earnings, excluding items,of $2.67 to $2.77 per share, representing annual growth of 15percent to 19 percent. Chief Executive David Snow said the forecast “takes intoaccount both the opportunities and challenges posed byeconomy.” Medco’s rate of dispensing more profitable generic drugsrose 3.5 percentage points to 66.8 percent in the quarter. Thecompany said it expected introductions of new generic medicinesto contribute 11 cents a share to 2009 earnings.
Adjusted prescription volume rose 9.4 percent to 226.1million. Mail-order prescription volume slipped 3.4 percent to25.7 million. “Declines in employer-sponsored health insurance from themanaged care companies in the first quarter leaves us concernedthat drug volumes will weaken at some point in 2009,” WachoviaCapital Markets analyst Matt Perry said in a research note. Rubino said Medco’s overall second-quarter performanceshould not differ materially from the first quarter, except foran additional 2 cents a share from generic opportunities. The company said it continued to sign new business, with$900 million of net new sales in the first quarter. Revenue from the Accredo Health Group grew 21 percent to$2.3 billion, reflecting contributions from new clients andgrowth in specialty pharmaceuticals, such as medicines given byinfusion. Pharmacy benefit managers, or PBMs, administer prescriptiondrug benefits for employers and health plans and operate largemail-order pharmacies.
