August 4, 2011 / 11:33 AM / in 7 years

UPDATE 2-SXC Health says client scraps contract; shares fall 13 pct

* Q2 EPS $0.34 VS $0.27 yr-ago

* Q2 rev rises 153 pct to $1.2 bln

* Says Hawaii’s Employer-Trust Benefit Fund terminates contract

* Raises FY outlook

* Shares hit more than 4-month low (Adds details from conference call, analyst comment; updates shares)

Aug 4 (Reuters) - SXC Health Solutions Corp , a provider of pharmacy benefit management (PBM), said one of its long-time clients terminated its contract with the company, sending SXC shares down as much as 13 percent.

The company, whose second-quarter profit rose 26 percent and raised its full-year forecast, said the impact from the loss of Hawaii’s Employer-Trust Benefit Fund would be “minimal” and would not impact its raised outlook.

The agreement, which Employer-Trust had renewed in 2009, involved SXC to provide PBM services like mandatory mail, specialty distribution, patient care clinical programs and employer group waiver plans.

“There has been disappointment about potentially losing the contract with Hawaii. That might be why the stocks are hurt,” Gabriel Leung of Paradigm Capital said.

The company raised its full-year adjusted profit view to $1.58-$1.62 a share from $1.55-$1.62 a share. It also raised it revenue forecast to $4.6-$4.7 billion, compared with its earlier forecast of $4.3-$4.5 billion.

SXC’s April-June profit rose to $21.6 million, or 34 cents a share, from $17.1 million, or 27 cents a share, a year ago. Excluding items, it earned 38 cents a share.

Revenue rose 153 percent to $1.2 billion. Adjusted prescription claim volume in its PBM segment almost doubled to 22.8 million.

U.S.-listed shares of the Lisle, Illinois-based company were down 10 percent at $54.00 in afternoon trading on Thursday on Nasdaq. They touched a more than four-month low of $52.24 earlier in the day. (Reporting by Arnav Das Sharma in Bangalore; Editing by Maju Samuel)

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