NASHVILLE, Tenn. - Pharmacy benefits manager Caremark Rx Inc. on Wednesday said profit rose more than 40 percent in the fourth quarter, driven by its prescriptions by mail business.

Earnings rose to $290.7 million, or 64 cents per share, in the three months ended Dec. 31 from $205.1 million, or 45 cents per share, in the year-ago period. Excluding integration expenses and a one-time gain on the sale of stake in a subsidiary, earnings were 55 cents per share.

The adjusted results matched the average estimate of analysts polled by Thomson Financial.

Revenue rose to $8.37 billion from $8.01 billion a year earlier, topping analysts' target of $8.26 billion. Mail pharmacy revenue totaled $3 billion and mail claims totaled 15 million, a year-over-year increase of 30 percent and 20 percent, respectively.

Its retail revenue fell 6 percent to $5.3 billion while retail claims dropped 21 percent to 111.2 million. It said the decline in retail claims reflected previously disclosed terminations of contracts with some retail-oriented clients.

Glenn Garmont, an analyst with New York-based First Albany Corp., said the increase in mail order business was boosted by Caremark's contract with the Federal Employees Health Benefits Program, which went into effect last January.

The dip in retail-related business stemmed from the loss of contracts with HMO Humana Inc. and at least two states last year, he said.

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