Extra Strength Solutions®

David “Sibo” Wang

Nelson Zhu

Company Profile

Medco operates the nation’s largest mail-order pharmacy operation.

Also works with local pharmacies Ranked in S&P 500 as 54th Averages 500 million prescription a year $42.5 billion in revenues $630.2 million in net income

3-month period

6-month period

1 year period

Strong Upward Trend

Increasing parabolic path

Good 2 touches on a linear trend line - Swing-Trade-Stocks.com 1) mid August 2) late October

Acquisition of PolyMedica

Bought Accredo Health for $2.3 billion in 2005 Focuses on complicated

medicines to address chronic, life-threatening diseases.

Acquired PolyMedica Corp (PLMD) for $1.2 billion to expand diabetes care services http://www.youtube.com/watch?v=lh_xzTECgjE

Profile (cont’d)

Acquired Polymedica (PLMD) on August 28th, causing PLMD stocks to soar

PLMD is a supplier of diabetes testing kits, expanded MHS’s horizons

14,800 employees

Acquisition of PolyMedica

Diabetics make up 5 percent of the U.S. population, but account for more than 15 percent of total drug spending

Already collaborated with positive results

The deal is expected to add slightly to Medco's earnings in 2008.

Why Pharmaceuticals?

1) A "must-repeat" purchase, high-margin business. no matter the economic

situation 2) Favorable world

demographics. 65+ years people use 3 - 4

times the prescription drugs of 30 year olds

The world population is aging. In the US, the group of people 65 or older will expand 17% by 2010, increasing the U.S. market beyond the current $105 billion level

3) Feel Good Factor Investing in company that

does good in the world makes you feel warm inside

4) Pharmaceutical company shares rose - The Associated Press End of October 2007after

the U.S. central bank's rate cut provided a small boost to the sector.

Why Medco?

Medco buys medicines for employers, unions and insurers Won’t be hurt by a fallback of

one drug Sales have risen for the

past seven quarters Analysts expect new

generics coming on the market to allow Medco to keep growing for several more years – seekingalpha.com

Bibliography

http://www.rttnews.com/sp/todaystop.asp?date=11/01/2007&item=44

http://www.chron.com/disp/story.mpl/ap/fn/5265828.html http://seekingalpha.com/article/27804-rob-black-s-healthcare-

stock-report http://www.ibtimes.com/articles/20070828/medco-polymedica-

acquisition.htm http://www.swing-trade-stocks.com/draw-trend-lines.html http://66.98.181.12/newsources/Nov1604a.htm http://www.fool.com/news/indepth/pharma/content/

pharmastocks.htm http://seekingalpha.com/symbol/mhs http://www.chron.com/disp/story.mpl/ap/fn/5261804.html