Pharmacy benefit manager Express Scripts Holding Co. says more clients are sticking with the company as it rolls out new strategies for keeping prescription drug costs under control.
The result was a higher net income in the third quarter despite decreasing revenue amid projections that the improved picture will continue for the rest of the year.
“It is clear that our unique collection of cost-saving solutions and our business model of client alignment position us well for continued growth,” said Tim Wentworth, president of Express Scripts, in a news release.
Express Scripts' earnings were up in the third quarter, reporting profits of $661.7 million, or 97 cents a share, on $25.2 billion in revenue, an increase of 13.6% in earnings, but a 2.2% decrease in revenue compared to the same period in 2014. For the first nine months of 2015, the company earned $1.7 billion on $75.5 billion in sales, an earnings increase of 19.4% on a sales increase of 1.3% compared with the previous year.
The company increased earnings through a combination of lower spending on drugs for its clients and lower overhead costs. The St. Louis-based company provides pharmacy management services, which include home delivery services, drug utilization review and overall affordability for pharmacy drugs.
Looking ahead, the company projects its fourth-quarter results will reach $1.54 to $1.58. It raised its projected retention rate for the 2015 selling season from a range of 95%-97% to 96%-97%.
"We are confident in the upper range of our expected retention rate, a reflection of the trust clients have in Express Scripts," Wentworth said. "Our core capabilities are differentiated and are in greater demand in the marketplace.”