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This article presents an update on the performance of pharmaceutical services company Caremark Rx as of January 2002. The hoped-for surge in biotech drugs could be the prescription for fresh growth at Caremark. The $4 billion company is already one of the largest pharmaceutical services companies in the U.S., distributing drugs and administering benefits for big corporations and insurance companies. It also operates a booming mail-order business. Through the nine months ended September 30, 2001, net revenues rose by almost a third, while profits jumped 72% to 50 cents a share. That pushed the stock to 16, a 20% one-year gain. Although there is competition from Gentiva Health Services and Priority Healthcare in the new biotech arena, Caremark is miles ahead. |