Catamaran profit jumps on acquisitions; sees strong 2013
(Reuters) - Pharmacy benefit manager Catamaran Corp (CCT.TO) (CTRX.O) reported a 59 percent jump in fourth-quarter profit, helped by acquisitions, and forecast higher revenue and profit for the current year.
Catamaran, formerly named SXC Health Solutions, expects a net profit of $1.18 to $1.25 per share in 2013, up from the 70 cents per share it reported last year.
On an adjusted basis it expects to earn $1.81 to $1.88 per share, up from $1.19 per share it earned in 2012.
The company forecast 2013 revenue of $14.2 billion to $14.6 billion. It reported revenue of $9.9 billion last year.
Net income attributable to the company in the fourth quarter rose to $42.5 million, or 21 cents per share, from $26.7 million, or 21 cents per share, a year earlier.
Catamaran executed a two-for-one stock split on October 1, 2012.
On an adjusted basis, the company earned 39 cents per share.
PBM revenue rose 144 percent to $3.3 billion. The company said new contracts helped drive revenue growth.
PBMs administer health plans and drug benefits for employers and run mail-order pharmacies. They help cut costs of medication by encouraging more use of generic drugs.
The company bought HealthTran LLC, a pharmacy benefit manager, and its rival Catalyst Health Solutions Inc last year.
"This past year has been a transformative period for Catamaran, led by the merger with Catalyst which doubled our size," Chief Executive Mark Thierer said in a statement.
Shares of the company, which has a market value of C$11.48 billion, closed at C$56.77 on Wednesday on the Toronto Stock Exchange.
(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Roshni Menon)