Medco Looks at 3

NEW YORK Medco Health Solutions has narrowed its search for an agency to handle direct marketing, public relations and interactive duties and a selection is expected within the next two weeks, sources said.

Three shops remain in contention: Omnicom Group’s Rapp Collins in New York and Interpublic Group units Mullen in Wenham, Mass., and Gillespie in Princeton, N.J., said sources. Account billings are estimated at $20 million.

The remaining finalists emerged after five shops made presentations to client executives last month. Sources identified the other two agencies as WPP Group’s Wunderman and Publicis Groupe’s Glow Worm, both in New York. A sixth shop, independent DiMassimoGoldstein in New York, was briefed but withdrew before final presentations, said sources.

Medco manages pharmacy benefits for corporations, HMOs, unions, insurance companies and federal employees.

Previously, Medco has used several shops for direct marketing, PR and interactive tasks. As such, the Franklin Lakes, N.J.-based client is looking to consolidate the business at a single shop.

Not in play is an assignment handled by IPG’s Gotham here, which since 2004 has created brand image ads for Medco. Gotham also handles media planning and buying for Medco.

New York-based consultancy Alan Krinsky Associates is managing the review. Krinsky did not return calls, and the client could not immediately be reached. The agencies either declined comment or could not be reached.