Medco Health Solutions: Sales Strategy : This report starts with a chronological overview of Medco, profiles its management team, and also highlights the recent developments in the company. A key part of this report is an analysis of Medco’s value chain and an assessment of the key business strategies that have driven the company’s growth.
Executive Summary
Established in 1983, Medco Health Solutions is a leading pharmacy benefits management (PBM) company in the US.
In 2006, the US is expected to spend about US$xx on prescription drugs including US$xx on biologics. With increasing drug costs, PBMs are being considered as a means to rationalize utilization and mitigate costs. PBMs are expected to play a critical role as third-party intermediaries for drugs. The key aspects of Medco’s business strategy are increasing the share of generics, enhancing the specialty pharmacy offering, actively participating in Medicare Part D, and harnessing the growing mail order opportunity. The company generated revenue of US$xx billion in 2005
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