NEW YORK (AP) — Pharmacy benefits manager Medco Health Solutions Inc. said Friday that after this year, it will lose a contract that brought it about $3 billion in annual revenue.
The contract, which Medco had handled since 2008, will go to rival CVS Caremark Corp. CVS Caremark shares rose as much as 3.5 percent in morning trading while Medco stock suffered the largest decline of any company on the S&P 500, tumbling more than 10 percent.
Medco said Blue Cross Blue Shield will not renew a contract that saw Medco handle mail order and specialty drug benefits for the Federal Employees Health Benefits Program, which provides health insurance to federal government employees, retirees, and their families. Blue Cross' decision not to renew the deal will not affect CVS or Medco's results in 2011.
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