Express Scripts Holding Company
) recently launched an innovative online tool to facilitate better
understanding among patients of the disease affecting them and the
mechanism of the resultant therapy.
The visual and audible information provided by the online tool
to the patients helps in improving their understanding. Express
Script's new online offering, virtual coaching, targets patients
suffering from serious diseases such as hepatitis C, hemophilia,
multiple sclerosis apart from autoimmune deficiencies.
Express Scripts will provide virtual coaching to patients
through its wholly-owned subsidiary, United BioSource Corporation
or UBC. UBC is a scientific and medical affairs organization with
operations spanning across the globe. UBC, by providing integrated
services, helps pharmaceutical and biotech companies to provide
specialty prescription products and services to patients, doctors
We believe that the introduction of the online tool will be
warmly welcomed by patients. According to data released by National
Council on Patient Information and Education more than 60% of
patients fail to reproduce correctly the information provided to
them by their doctors about the drugs prescribed to them after ten
minutes. Virtual coaching aims to bring down this discrepancy.
We note that the introduction of the online tool is the latest
in a series of positive news emanating from Express Scripts. In
April 2012, Express Scripts acquired health care company Medco
Health Solutions for $29.1 billion thereby, broadening its product
Aided by the expanded product portfolio, Express Scripts
performed exceptionally well in the second quarter of 2012 with
revenues jumping 143.7%. The strong performance caused management
to increase its adjusted earnings guidance for 2012 to $3.60-$3.75
per share (previous guidance: $3.36-$3.66).
Furthermore, the favorable resolution of Express Scripts'
long-standing dispute with retail giant
) in July 2012 is another major positive for Express Scripts.
Express Scripts will extend its services to over 64,000 pharmacies
across the US following the inclusion of Walgreen in its network.
Per the new agreement, Walgreen will start filling prescriptions
from Express Scripts' customers from September 15, 2012. The
favorable resolution has removed a major overhang on Express
In view of the positives mentioned above, we upgraded Express
Scripts to Outperform earlier this month. Our long term
recommendation is in line with the Zacks #1 Rank (Strong Buy
rating) carried by the stock in the short run.
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