Research and Markets: Medco Health Solutions Stands to Gain as Brand Name Prescription Drugs Worth US$46.4 Billion Go Off-Patent During 2006-2009.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c45295) has announced the addition of Medco Health Solutions: Sales Strategy to their offering.

This report starts with a chronological overview of Medco, profiles its management team, and also highlights the recent developments in the company. A key highlight of this report is an analysis of Medco's value chain and an assessment of the key business strategies that have driven the company's growth.

Established in 1983, Medco Health Solutions is a leading pharmacy benefits management (PBM) company in the US.

In 2006, the US is expected to spend about US$xx on prescription drugs, including US$xx on biologics. With increasing drug costs, PBMs are being considered as a means to maximise utilization and mitigate costs. PBMs are expected to play a critical role as third-party intermediaries for drugs. The key aspects of Medco's business strategy are increasing the share of generics, enhancing the specialty pharmacy offering, actively participating in Medicare Part D, and harnessing the growing mail order opportunity. The company generated revenue of US$xx billion in 2005.

Key Findings:

* Medco stands to significantly gain from generics, as brand name prescription drugs worth US$46.4 billion are going off-patent during 2006-2009. The generic fill rate at Medco reached 51.5% in 2005.

* Medco had the highest industry mail penetration rate at 36.6% in 2005.

* Accredo (Medco's specialty pharma subsidiary) provides incremental revenue for specialty business. The Accredo acquisition is expected to provide synergies of US$50m in 2006. The acquisition will also provide cross-selling and up-selling opportunities to existing Medco clients and increase the bargaining power for rebates with pharmaceutical manufacturers.

1. Company Overview

1.1 Corporate History

1.2 Key Facts

1.3 Subsidiaries/Affiliates

1.4 Organizational Chart 

1.5 Profiles of Key People

1.6 Recent Developments

2. Medco Sales Value Chain

2.1 Value Chain

2.2 Medco's Value-Addition for Various Stakeholders 

2.3 PBM Revenue Model of Medco

3. Key Sales Strategies

List of Figures and Tables

Figure 1.1 Organizational Chart

Figure 2.1 Sales Chain- via Mail Order

Figure 2.2 Sales Chain- via Mail Retail

Figure 3.1 Off Patent Compounding Effect (2006-2010)

Figure 3.2 Medco Generic Dispensing Rate (2003-2009e)

Figure 3.3 Medco Mail Order Drug Prescriptions (2003-2006e)

Figure 3.4: Medicare Part D Creates New PBM market (2005)

Table 1.1 Key Facts

Table 1.2 Subsidiaries/Affiliates

Table 1.3 Profiles of Key People

Table 1.4 Recent Developments

Table 3.1 Medco revenue breakup (FY05)

Table 3.2 Major Clients

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