Medco Health income grows 19% in 2nd-Q & raises 2009 profit outlook

Pharmacy benefits manager Medco Health Solutions said new clients & high prices for brand-name Rx drugs strengthened 2nd-Q profit. It raised its full-year forecast, & shares rise to a new 52-week high. Medco said consumers are cutting back on brand name drugs due to the recession, but demand for low cost generics solid & sales of pricey specialty drugs grew 20%. It also said makers are getting more aggressive with prices as a new wave of high-profile patent expirations approaches in 2011. CEO David Snow said prices for all kinds of drugs rose at a slightly faster pace than in 08. "You have this unprecedented wave of generics coming & you often see more aggressive pricing as they face end of patent life," he said. He said its Accredo unit, that provides specialty drugs for chronic illness like diabetes, had a phenomenal quarter. Medco stock advanced $1.77, or 3.4%, to $53.16 in trading. Shares earlier peaked at $53.37. The Franklin Lakes, NJ-based company said profit rose 19% to $312.1M, or 64