REFILE-UPDATE 5-Medco posts higher net, keeps forecast

(Refiles to fix stock symbol (RIC) format in paragraph 1)

* Q1 EPS 63 cents ex items vs 62-cent Wall St estimate

* Backs 2009 profit forecast

* Prescription volume up 9.4 percent

* Shares fall 3 pct (Adds CFO comment from interview, updates shares)

By Lewis Krauskopf and Bill Berkrot

NEW YORK, April 29 (Reuters) - Medco Health Solutions Inc (MHS.N) said on Wednesday that quarterly net income rose, helped by new business, but the pharmacy benefit manager did not raise its full-year forecast, disappointing some investors.

Analysts suggested disappointment over the forecast and concern that the company's burgeoning cash pile would lead to a potentially disruptive acquisition were putting pressure on the stock, which was down 3 percent.

"They had a good quarter, but they didn't do anything with guidance," said Jefferies & Co analyst Arthur Henderson. "I assume people hoped they might raise it."

On a conference call with analysts and investors, Medco officials said the company had $1.8 billion of cash at the end of the first quarter and expected that to grow by the end of 2009. It also said it would be open to a major acquisition.

"Any time there's a big acquisition, people worry about integration risk," Henderson said.

Gabelli & Co analyst Jeff Jonas said "fear of a big deal" could be driving down the stock.

But Chief Financial Officer Richard Rubino said the company's healthy cash position does not mean a big acquisition is imminent.

"It's good to have when there's very little liquidity in the market," Rubino said in a telephone interview. And, he added, "if there was an (acquisition) opportunity that would drive long-term shareholder value, at least we have the powder to take advantage of it."

Medco's net income rose 8 percent to $291 million, or 58 cents per share, from $270.2 million, or 50 cents per share, a year earlier.

Excluding items, Medco earned 63 cents per share, 1 cent more than analysts' average forecast, according to Reuters Estimates.