FRANKLIN LAKES, N.J., Aug. 20 /PRNewswire-FirstCall/ -- Medco Health
Solutions Inc. (NYSE: MHS), the leading pharmacy benefits manager (PBM) based
on 2002 net revenue of $33 billion -- managing more prescriptions than any
other company in America -- today separated from Merck & Co., Inc. It is the
largest domestic corporate spin-off in more than three years.
(Photo: http://www.newscom.com/cgi-bin/prnh/20030819/PHTU011 )
"Today, as a separate company with an independent board of directors,
Medco Health is entering an exciting new chapter in its history. Our people
are re-energized and our enterprise is rededicated to continuing the
innovation and leadership that ensures our collective clients obtain
affordable, high-quality prescription health care for 62 million Americans,"
said David Snow, chairman, president and CEO, Medco Health.
Regular trading began today on the New York Stock Exchange for Medco
Health securities under the symbol MHS following the distribution a day
earlier of 270 million shares to stockholders of Merck & Co., which has owned
Medco Health since 1993. With the opening day of trading today, Medco Health
becomes a new component of the S&P 500, Standard & Poor's flagship stock
"As a separate company we have but one focus: the relentless pursuit of
continuous improvement - and every day, we are confident that as we do what's
right for our clients and members, we'll also be doing what's best for our
company and our new shareholders," said Snow.
Medco Health is a leader and innovator in applying advanced technologies
to enhance productivity and reduce costs, provide greater convenience for
clients and their members, and improve overall patient care.
Through its home delivery pharmacies, Medco Health filled approximately 82
million prescriptions in 2002. This represents about 30 percent more than the
number of prescriptions filled by the mail service operations of its three
largest competitors combined.
In all, Medco Health in 2002 filled or processed approximately 548 million
prescriptions, delivering medicines through a network of nearly 60,000 retail
pharmacies nationwide and its home delivery pharmacies.
The Medco Health spin-off, measured by market capitalization, is the
largest since the July 12, 2000 spin-off of Stillwell Financial Inc. from
Kansas City Southern Industries Inc.
Independent Board Seated
As expected, concurrent with the spin-off, the three Merck-employee
directors on the Medco Health board resigned, and seven independent board
directors were empanelled.
"With seven external members joining me, the structure of the Medco Health
board puts us at the vanguard of corporate governance practices and shows
governance leadership within our industry," said Snow.
The seven independent directors are:
-- Howard W. Barker, Jr.: From July 1982 until he retired in September
2002, Mr. Barker served as a partner of KPMG LLP.
-- John L. Cassis: Mr. Cassis is a venture capitalist. Since 1994, he
has served as a partner and board member of Cross Atlantic Partners,
Inc. Mr. Cassis formerly headed and was a director of Salomon
Brothers Venture Capital, and is a director of Nomos Corp.
-- Michael Goldstein, C.P.A.: Mr. Goldstein is a director of Toys "R"
Us, Inc., where he also was Chairman from February 1998 to June 2001.
-- Lawrence S. Lewin: Mr. Lewin founded The Lewin Group, a health
policy and management consulting firm, and most recently served as CEO
and a Director of Quintiles Transnational, until his retirement in
-- Edward H. Shortliffe, M.D., Ph.D.: Since January 2000, Dr. Shortliffe
has been a professor at Columbia University and has held a number of
other positions at Columbia University, including Chair of the
Department of Biomedical Informatics for the College of Physicians and
Surgeons and Director of Medical Informatics Services.
-- Brian L. Strom, M.D., M.P.H.: Since 1980, Dr. Strom has been a
professor at the University of Pennsylvania School of Medicine and has
held a number of other positions at the University, including Chair of
the Department of Biostatistics and Epidemiology and Director of the
Center for Clinical Epidemiology and Biostatistics. Dr. Strom also
currently serves on the Drug Safety and Risk Management Committee for
the U.S. Food and Drug Administration.
-- Blenda J. Wilson, Ph.D.: Since July 1999, Dr. Wilson has served as
the President and Chief Executive Officer of the Nellie Mae Education
"In their own right, each is a distinguished leader in his or her field.
Collectively, they will provide our new company with deep and diverse
expertise in healthcare, public policy, academia, mergers and acquisitions,
business development and governance," Snow said.
About Medco Health
Medco Health Solutions, Inc., (www.medcohealth.com) is the nation's
leading provider of prescription healthcare services, based on its 2002 net
revenues of approximately $33 billion. Medco Health assists its clients to
moderate the cost and enhance the quality of prescription drug benefits
provided to 62 million Americans nationwide. Its clients include private and
public-sector employers and healthcare organizations, including 190 of the
Fortune 500 companies.
This press release contains "forward-looking statements," as that term is
defined in the Private Securities Litigation Reform Act of 1995, which involve
risks and uncertainties. No forward-looking statement can be guaranteed, and
actual results may differ materially from those projected. We undertake no
obligation to publicly update any forward-looking statement, whether as a
result of new information, future events, or otherwise. Forward-looking
statements in this press release should be evaluated together with the
disclosure regarding Medco Health in our registration statements on Form 10
(SEC File No. 1-31312) and Form S-1 (SEC File No. 333-86404) filed with the
Securities and Exchange Commission, including the risks and uncertainties
facing our business described therein.
SOURCE Medco Health Solutions, Inc.