Managed Care Firms Bulk Up

As if on cue, Express Scripts immediately followed up on Tuesday by issuing bullish guidance for the coming year. The PBM expects to post 2008 earnings of $2.80 to $2.87 a share, representing year-over-year growth of up to 25%. On average, analysts have been predicting that the company would report 2008 earnings a penny below the bottom end of that range.

"Our outlook for continued strong growth reflects the success of our business model, which is built around alignment of interests with plan sponsors and their patients," Express Scripts CEO George Paz stated on Tuesday. "As we drive greater savings for our clients, our performance improves."

So does the company's stock price. The shares jumped 2.7% to $67.47 following the company's upbeat call. Shares have nearly doubled since the beginning of the year.