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Arcadia sees smaller loss, extends WellPoint pact

August 9, 2010

Arcadia Resources Inc. continued to shed money in its most recent quarter, but took a smaller loss than it did in the same period a year ago, the Indianapolis-based health care company announced Monday morning.

Arcadia lost $4 million, or 2 cents per share, on revenue of $25.8 million in its first fiscal quarter, which ended June 30. That compares to a loss of $4.6 million, or 3 cents per share, on revenue of $26.4 million for the same quarter of 2009.

The loss was far narrower than the $19.2 million hit the company suffered in the last quarter of fiscal 2009.

“During our first quarter, we continued to make substantial progress across both of our businesses,” said Arcadia CEO Marvin R. Richardson.

In its pharmacy segment, Arcadia reported revenue of $5.1 million in the latest quarter, marking a 57.1-percent increase for its DailyMed medication-management system over the year-ago period.

Arcadia’s DailyMed service packages dosages of prescriptions into individual packets, to make it easier for patients on numerous medications to stick to their regimens.

Quarterly revenue in the services segment was $20.4 million, a decrease of $2.3 million, or 10.2 percent, compared to the same quarter last year.

In addition on Monday, Arcadia said it reached a new three-year agreement to offer the DailyMed program to high-risk Medicaid members in select states where WellPoint Inc. companies provide Medicaid-managed care benefits. Financial terms of the agreement were not disclosed.

DailyMed is currently offered in WellPoint-affiliated health plans in Virginia, California and South Carolina, and will be launched in Kansas later this year. The new agreement opens as many as 1.8 million more WellPoint members in 10 states to the DailyMed product.

A research report released in late July predicted Arcadia’s DailyMed business would grow rapidly in the next few years, spurring the company to profitability.
 

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