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Medco Expecting 'Monster' Earnings in 2012: CEO

Mail-order drug pharmacy Medco Health Solutions will have a “monster” year, meaning a very lucrative one, in 2012, due to a number of blockbuster drugs going off-patent, David Snow, its CEO and chairman, told CNBC Monday.

“In November, we mapped out the relative incremental contributions over the entire decade to 2020,” added Snow, who was speaking from the JP Morgan Healthcare Conference in San Francisco. “You’re going to see upwards of 60 cents a share for us easily in that zone.

“And it’s not just Lipitor [which treats high cholesterol]: We get the full-year impact in ‘2012, one month impact in ‘2011, but you also have the Number 3 drug in the world, Plavix [which is used to prevent strokes and heart attacks], going off-patent. There are actually five other drugs going off-patent in '12. It’s [going to be] a very big year.”

Snow said that Medco’s "guidance for 2011 is from 12 to 17 percent gap EPS growth," and that the drivers of growth are Medicare mail, new sales for its clinic business, biotech specialties side and clinical research division, which deals in Phase 4 clinical trials.