Express Scripts Holding Company
) recently announced that it has expanded its customer base through
its newly rebranded Federal Pharmacy Services unit. Express
Scripts, which had so far provided services to the US Department of
Defense (DoD) and the 9.7 million beneficiaries under the DoD's
TRICARE healthcare scheme, aims to serve other federal agencies
through this move.
We note that the TRICARE pharmacy program is managed by the
TRICARE Management Activity (TMA) of the DoD. The program
encompasses active and retired military members and their families
and others eligible for DoD medical care.
Express Scripts' decade long association with the DoD has worked
very well. The partnership apart from bringing down pharmacy costs
has increased beneficiary satisfaction. Express Scripts stated in
its press release that the creation of the new unit will not impact
this decade long association. Express Scripts merely aims to expand
its pharmacy benefit management services to federal employees and
Express Scripts has been constantly working to upgrade its
services. Last month, the company launched an innovative online
tool, virtual coaching, to facilitate better understanding among
patients of the disease affecting them and the mechanism of the
The visual and audible information provided by the online tool
to the patients helps in improving their understanding. The new
online offering targets patients suffering from serious diseases
such as hepatitis C, hemophilia, multiple sclerosis apart from
We have an Outperform recommendation on Express Scripts. The
stock carries a Zacks #1 Rank (Strong Buy rating) in the short run.
Strong second quarter 2012 results, an upbeat guidance and the
favorable resolution of its long-standing dispute with retail giant
), justify our bullish stance on Express Scripts.
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