GO
Loading...

On the Line: Medco CEO David Snow

Thursday, 20 Dec 2007 | 7:47 PM ET
MHS CEO on Pharma
David Snow, Medco Health chmn. & CEO, discusses drug development and gene testing, with Mad Money host Jim Cramer.

As much as Cramer trumpeted MedcoHealth Solution’s earnings visibility on Monday’s show, CEO David Snow said the numbers are even better than the Mad Money host thought.

“Some of the numbers you’re using are a little outdated,” Snow said. The figures Medco has are “better than the numbers you’re talking about,” he told Cramer.

Thanks to a database filled with millions of customers, Medco can better tell if a certain drug might be more right for a specific illness. It boosts the company’s generic dispensing rates and its profitability. Medco’s even using pharmacogenomics, which uses gene testing to figure out if a person has the right dosage relative to their personal ability to metabolize a drug.

There was talk that if UnitedHealth takes its pharmacy business in-house Medco could miss its forecasted numbers. But Snow emphatic that even if UNH withdrew its business as of Jan. 1, 2008, “we wouldn’t change our guidance.”

“This is an easy call for me,” Cramer said. “This is exactly what kind of stock should be a bedrock in your portfolio.”

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
UNH
---

Featured

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.