SXC Health Gets High (NASDAQ:SXCI, MHS, ESRX)

SXC Health Solutions Corp. (USA)(NASDAQ:SXCI) shares had an amazing rally in the prior trading session and made an all-time high after analysts at JMP Securities remarked the company was selected by the Indiana Department of Administration to manage Indiana’s Medicaid pharmacy benefit program. As per the analyst, the company has won a competitive bidding process to begin contract talks with the Indiana Department of Administration, for an estimated contract value of around $32 million. As a result, the shares of the company soared 6.44% in yesterday’s trading session, on an above average volume of 1.21 million shares, which is around 3x times its average daily traded volume. The company has also made a 52 week high at $79.26 in yesterday’s session but closed at $78.87. In 2012, the stock of the company has soared 40%.

JPM maintained its Market Outperform rating on the stock with a price target of $79, citing the company’s ability to administer a high level of customization and service, particularly in the more complex Medicaid market. Additionally, analysts also feel that SXC Health can now be considered as a possible takeover target after U.S. regulators cleared Express Scripts Inc.’s $29.1 billion acquisition of Medco.

Also, earlier this week, Express Scripts, Inc.(NASDAQ:ESRX) cleared the eight-month review and won U.S. antitrust clearance on Monday for its purchase of rival Medco Health Solutions Inc.(NYSE:MHS) for $29.1 billion. Following the announced acquisition, there were reports from Wall Street Access and Leerink Swann LLC that SXC Health Solutions could be an acquisition target by UnitedHealth Group Inc.

For the three months ending December 31, 2011, the company had reported revenue of $1378.52 million, as compared to $526.87 in the year ago period. Net income for the period stood at $26.68, as against $16.62 in the year ago period.

SXC Health is a provider of pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefit management industry.