George Paz

Express Scripts 1Q Profit Declines On Medco Costs

Express Scripts Holding Co.

's (ESRX) first-quarter earnings fell 18%, pressured by costs tied to the recent acquisition of fellow pharmacy-benefit manager Medco Health Solutions Inc. and efforts to clear space for Medco's integration.The $29.1 billion purchase closed in early April, creating the pharmacy-benefit sector's biggest company. The companies, known as PBMs, manage drug benefits for health plans and corporate customers.The just-concluded deal has heightened interest in company forecasts, and on that front, St. Louis-based Express Scripts forecast a 2012 earnings range mostly below analyst expectations. The company's shares slipped 0.8% to $53.90 in after-hours trading.Though the Street forecast was pumped up by some particularly high estimates, company guidance was still "a little lighter" than people expected, Jefferies & Co. analyst Arthur Henderson said. Guidance-related questions will be important on the company's earnings call early Friday, he said.The company late Thursd...

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