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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: orkrious who wrote (92351)7/8/2002 8:26:14 AM
From: John Carragher  Read Replies (3) of 99280
 
I expect the revenue is the store cvs for example that records revenue of $20.

from wsj..
Revenue in Question

Medco's revenue in question is the co-payment -- $10 to $15 is typical in the industry -- paid by consumers
with a prescription drug card to their retail pharmacy to cover their portion of the cost of a drug under an
insurance plan. The pharmacy keeps the entire amount of the co-payment.

Merck contends that it has legal liabilities for the co-payment under certain circumstances, such as if it
transmits electronically to the pharmacist incorrect information about how much co-payment the pharmacist
should collect. But in its SEC filing, the company said it doesn't face a "credit risk," which would force it to
reimburse pharmacies if a customer skipped out on making the co-payment.
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