Memphis-based Accredo Health Group , the pharmacy division of Medco Health Solutions that produces speciality drugs, reported a record-breaking second quarter.

With a continuing trend of attracting new clients to the growing speciality-medicine industry, the company saw a 20 percent return, pushing revenue to a record $2.4 billion, compared with $2 billion in the same quarter of 2008.

The 4-year-old company ships expensive drugs for rare diseases to people nationwide.

Despite a sluggish economy, Accredo president Steve Fitzpatrick said, "We anticipated we would stay strong. These therapies are not optional for our patients."

Accredo employs 1,700 employees in Memphis and 22,000 Medco- wide.

Fitzpatrick said the company, with headquarters in Franklin Lakes, N.J., planned to keep its specialty-drug division in Memphis but didn't expect many new jobs to be created in the near future.

"We're going to grow, but it's not going to be a significant expansion plan," he said.

The local division also grew its operating income by 30.5 percent, earning $88.5 million in the quarter, up from $68 million in the second quarter of last year.

Meanwhile, parent company Medco saw an overall increase in revenue of nearly 19 percent.

Net income rose to $312 million, or 64 cents per share, compared with $263 million, or 51 cents per share.

Excluding one-time costs, Medco reported it earned 69 cents per share, beating analysts' predictions by four cents, according to a Thomson Reuters survey.

"We are confident in our continued strong performance for the remainder of 2009, despite the weak economy, and are pleased to raise our guidance to yield expected GAAP diluted earnings per share growth of 19 to 22 percent," said Medco chairman and CEO David B. Snow Jr. in a prepared statement.

Medco's shares shot up 4 percent Wednesday, closing up $2.07 at $53.46.

- Lindsay Melvin: 529-2445

--------------------

Accredo Health Group

Top local executive: Steve Fitzpatrick, president

Employees: 1,700 in Memphis, 4,800 nationally and 22,000 through Medco

Address: 1640 Century Center Pkwy.

Web site: accredohealthgroup.com

--------------------

Originally published by Lindsay Melvin lindsay.melvin@commercialappeal.com .

(c) 2009 Commercial Appeal, The. Provided by ProQuest LLC. All rights Reserved.

A service of YellowBrix, Inc.