Medco Health Solutions (NYSE: MHS), which manages prescription benefits for about one in five Americans, saw profits rise 32 percent in the fourth quarter as customers increasingly turned to generics and mail-order pharmacies to save a buck. Both are not only cheaper for consumers, but are also much more profitable for the benefits manager, which realizes higher margins on lower-cost drugs and services. The mail-order generic dispensing rate, the holy grail of profitability, rose a full 5 percent. Full year 2009 earnings came in at $2.13 per share, and Medco provided 2009 guidance of $2.67 to $2.77 a share.

Enerplus Resources Fund (TSX: ERF-U, NYSE: ERF) reported net income of CAD888.9 million for 2008, up from CAD339.7 million in 2007. Fourth quarter profit was up by more than 90 percent versus the same period last year. Average daily production grew 21 percent to 97,702 barrels of oil equivalent per day (boe/d) over a year ago due to its acquisition of Focus Energy Trust; however, for fiscal 2009 the trust is anticipating that production will fall to 91,000 BOE per day. Based on projected lower production growth and still-depressed oil prices, the trust slashed its distribution to just CAD0.18 per unit per month to conserve cash.

After taking charges for discontinuing two experimental cancer drugs, Sanofi-Adventis (NYSE: SNY) reported that fourth quarter profit plunged 76 percent. In response, the company has promised a shakeup of its research and development department. Full year net profit fell 27 percent to EUR3.85 billion as sales dropped 1.7 percent. On an adjusted basis, excluding the charges, profits would have shown 13.9 percent growth for the period.

On a positive note, Sanofi finally closed its long-running attempt to take over Czech pharmaceutical Zentiva NV after 70 percent of the company’s outstanding shares were tendered. At a cost of EUR1.8 billion, the acquisition will make Sanofi-Aventis the eleventh-largest generic drug manufacturer in the world.

Proctor & Gamble (NYSE: PG) has drawn criticism from some quarters after announcing it would award Chairman and Chief Executive AG Lafley a $3.5 million for his role in acquiring Gillette. Maker of Gillette razors and Duracell batteries, along with numerous other well known consumer products, Gillette’s brands are complimentary to P&G’s own offerings in the immediately accretive deal. The discord surrounding the bonus seems overblown however, particularly since it’s being paid in restricted stock rather than cash.