Is Medco Healthy?
MedcoHealth Solutions has dropped 11% since Cramer’s December call, as the potential for Unitedhealth to withdraw its business has analysts downgrading the stock left and right. But CEO David Snow sees things differently.
Medco’s coming off a “phenomenal” sales year, Snow said, garnering $5 billion in new-name business. The future holds profits, too, he continued. The CEO rattled off figures like the $90 billion worth of brand-name drugs coming off patent by 2015 and the 5% increase in guidance the company offered during its last conference call.
“Every year someone finds something to worry about, and we work our way through it,” Snow said. “We are going to do that again.”
Cramer agreed: “I think the downgrades were uncalled for,” he said, adding that Medco is a multiyear mover. “I like MHS.”
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