* Express Scripts Q3 EPS $0.81, tops Street View
* Raises low end of 2008 earnings forecast
* Generic utilization increased to 66.2 pct
Pharmacy benefit manager Express Scripts Inc (ESRX.O: Quote, Profile, Research, Stock Buzz) reported better-than-expected third-quarter profit and revenue on Thursday, helped by increased use of more profitable generic drugs.
The company, which administers prescription drug benefits for employers and health plans, posted a net profit of $201.9 million, or 81 cents per share, compared with a profit of $143 million, or 56 cents per share, a year ago.
That topped analysts' average expectations by three cents, according to Reuters Estimates.
The St. Louis-based company said the economic slowdown has made its ability to negotiate lower health care costs for its customers even more attractive.
Express said its generic utilization rate increased to 66.2 percent from 62.2 percent in the year-ago quarter. Cheaper generic medicines have a higher profit margin than more expensive branded drugs.
Total revenue for the quarter rose to $5.45 billion from $5.36 billion and topped Wall Street estimates of $4.65 billion.
"In the current economic environment, plan sponsors need us more than ever to help lower their pharmacy spend," Chief Executive George Paz said in a statement.
Express raised the low end of its full-year earnings forecast by 4 cents and now expects $3.07 to $3.10 per share.
For 2009, the company expects generic usage, its home delivery business and specialty pharmacy management to grow. It also sees lower drug purchasing costs. As a result, Express is forecasting earnings to rise to $3.63 to $3.73 per share.
Analysts polled by Reuters Estimates are looking for 2009 earnings of $3.63 per share.
Express Scripts shares were relatively unchanged in extended trading after climbing 12.7 percent to $57.57 on Nasdaq during the day. (Reporting by Bill Berkrot; Editing by Phil Berlowitz)
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