Attached files
file | filename |
---|---|
8-K - FORM 8-K - MEDCO HEALTH SOLUTIONS INC | y92523e8vk.htm |
EX-99.3 - EX-99.3 - MEDCO HEALTH SOLUTIONS INC | y92523exv99w3.htm |
EX-99.6 - EX-99.6 - MEDCO HEALTH SOLUTIONS INC | y92523exv99w6.htm |
EX-99.2 - EX-99.2 - MEDCO HEALTH SOLUTIONS INC | y92523exv99w2.htm |
EX-99.8 - EX-99.8 - MEDCO HEALTH SOLUTIONS INC | y92523exv99w8.htm |
EX-99.7 - EX-99.7 - MEDCO HEALTH SOLUTIONS INC | y92523exv99w7.htm |
EX-99.4 - EX-99.4 - MEDCO HEALTH SOLUTIONS INC | y92523exv99w4.htm |
EX-99.1 - EX-99.1 - MEDCO HEALTH SOLUTIONS INC | y92523exv99w1.htm |
Exhibit 99.5
The Express Scripts-Medco Mergers Approach to Better Patient Care
Even the most effective treatments cannot help patients if they are not used properly. Gaps
in care related to medication non-adherence affects millions of Americans. The Express
Scripts-Medco merger will help close these gaps by combining Express Scripts expertise in
behavioral science with Medcos expertise in advanced clinical pharmacy.
Non-adherence is a pervasive problem that costs lives and dollars. Removing the complex barriers
to changing patient behavior is a critical challenge:
| An estimated 50% of patients fail to take their medications as prescribed1 |
| 33% of patients dont fill the prescriptions written by their physician2 | ||
| 30% of patients stop taking prescribed medication prematurely3 | ||
| 25% of patients take less than their doctor-recommended dose4 |
| Non-adherence to prescribed medications accounts for nearly 20% of all hospitalizations and almost 125,000 deaths each year5 |
| In a study of patients with diabetes and heart disease, non-adherent patients had significantly higher mortality rates than adherent patients 12.1% versus 6.7%, respectively6 |
| Medication non-adherence is estimated to result in up to $290 billion in unnecessary costs per year 13% of total health expenditures7 |
| In a study of patients with chronic vascular disease, adherence led to a reduction in health care spending by as much as $7,800 per patient, per year8 |
An Express Scripts-Medco combination will address this issue by leveraging Express Scripts
expertise in behavioral science and Medcos expertise in patient-centered clinical care:
| Express Scripts Consumerology® initiative applies advanced behavioral science to identify and change common behaviors that prevent patients from adhering to their prescription medications |
| Proprietary computer-generated models accurately identify up to a year in advance which patients are at greatest risk of non-adherence | ||
| Simple-to-use tools effectively remind and encourage patients to take their medications |
| Dose Alert: A timer attached to a prescription vial beeps at pre-set intervals | ||
| Therapy Adherence Proactive Outreach: An automated phone call diagnoses why a patient is at risk of non-adherence and then provides an appropriate intervention |
| The Select Home Delivery Program allows members the choice and convenience of using Express Scripts mail order pharmacy or a retail pharmacy |
| Adherence is up to 8% higher for patients in this program9 | ||
| Savings estimated at $27 per member, per year10 |
1 | New England Healthcare Institutes report, Thinking Outside the Pillbox: A System-wide Approach to Improving Patient Medication Adherence for Chronic Disease, August 2009. | |
2 | National Council on Patient Information and Education, Enhancing Prescription Medicine Adherence: A National Action Plan, August 2007. | |
3 | Ibid | |
4 | Ibid | |
5 | Vermiere, E., et al. Patient Adherence to Treatment: Three Decades of Research. A Comprehensive Review. J Clin Pharm Ther. 2001 Oct; 26(5): 331-42. | |
6 | Ho PM, Magid DJ, Masoudi FA, McClure DL, Rumsfeld JS. Adherence to Cardioprotective Medications and Mortality Among Patients with Diabetes and Ischemic Heart Disease. BMC Cardiovas Disord. 200 15; 6-48. | |
7 | New England Healthcare Institutes report, Thinking Outside the Pillbox: A System-wide Approach to Improving Patient Medication Adherence for Chronic Disease, August 2009. | |
8 | Roebuck et al. Medication Adherence Leads to Lower Health Care Use and Costs Despite Increased Drug Spending. Health Affairs, 30, no.1 (2011): 91-99. | |
9 | ESI 2009 Annual Report | |
10 | ESI 2010 Drug Trend Report |
| Medcos Therapeutic Resource Centers are highly specialized pharmacies uniquely configured to address the most prevalent and serious chronic conditions |
| Expertly trained staff guided by clinical protocols assess patients prescription orders along with barriers to adherence | ||
| Pharmacists provide in-depth counseling to patients as well as reminders to take their prescribed medications | ||
| Are proven effective closing more than 2.3 million clinical gaps in care in 2010 with a projected savings of approximately $900 million11 |
| An analysis of 600,000 patients showed that Medco closed 81% of gaps in care related to patients with diabetes not adhering to diuretic medications12 | ||
| The same analysis demonstrated that Medco closed 74% of gaps in care related to patients with high cholesterol not adhering to statin medications13 |
| Medcos Cognitive Care Initiative a 26-week collaboration with community pharmacies throughout Illinois significantly improved adherence and increased the value offered by local pharmacies |
| The initiative identified 2,400 adherence gaps through its advanced clinical database and sent gap-in-care alerts to Illinois community pharmacists14 | ||
| Community pharmacists were trained to provide expert patient counseling on why adherence matters and techniques that improved adherence for 74% of these gaps15 | ||
| Community pharmacists in the program filled 48% more prescriptions after patient counseling16 and closed 27% more adherence gaps17 than control pharmacies | ||
| The success of this pilot program led to additional partnerships with community pharmacists in New Mexico and Florida |
The combined entitys investment in innovative, evidence-based protocols will accelerate the
delivery of advanced healthcare solutions:
| Medco and Express Scripts complement and enhance physicians skills by offering advanced services to deliver tailored treatments with the highest levels of efficacy, value, and speed |
| A Medco Research Institute/Mayo Clinic study showed that a simple genetic test reduces hospitalization rates by nearly a third for patients on warfarin, a widely-prescribed blood thinner18 | ||
| The Medco Research Institute discovered that tamoxifen, a drug used to treat breast cancer, is ineffective in women who have certain genetic variations, 19enabling doctors to instead prescribe an alternative therapy that has greater effectiveness |
| The ability to analyze aggregated prescription data for millions of patients will enable both companies to more effectively assess how medications work |
| Access to this data will provide greater speed in conducting research leading to a short discovery to practice timeline of typically less than 1 year20 | ||
| For example, Medco discovered that using heartburn medications in combination with a widely prescribed blood thinner, Plavix, increased risk of heart attack by 74%21 allowing the company to |
11 | Medco 2010 Annual Report | |
12 | Medco Integrated Data, 6-client analysis, ~600K lives over 90 days | |
13 | Ibid | |
14 | Medco Health Solutions Illinois Pilot Project | |
15 | Ibid | |
16 | Ibid | |
17 | Ibid | |
18 | Medco 2010 Annual Report | |
19 | https://www.medcoresearchinstitute.com/community/oncology/tamoxifen | |
20 | Medco Data | |
21 | Ibid |
place safety warnings in its system to alert pharmacists to potential danger even before the FDA issued an advisory | |||
| This discovery resulted in a 28% reduction in the use of this combination of medications for Medco Pharmacy patients22 |
Cautionary Statement Regarding Forward-Looking Statements
This document contains forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. These statements, as they relate to Medco Health
Solutions, Inc. or Express Scripts, Inc., the management of either such company or the transaction,
involve risks and uncertainties that may cause results to differ materially from those set forth in
the statements. No forward-looking statement can be guaranteed, and actual results may differ
materially from those projected. Medco and Express Scripts undertake no obligation to publicly
update any forward-looking statement, whether as a result of new information, future events or
otherwise. Forward-looking statements are not historical facts, but rather are based on current
expectations, estimates, assumptions and projections about the business and future financial
results of the pharmacy benefit management and specialty pharmacy industries, and other legal,
regulatory and economic developments. We use words such as anticipates, believes, plans,
expects, projects, future, intends, may, will, should, could, estimates,
predicts, potential, continue, guidance and similar expressions to identify these
forward-looking statements. Actual results could differ materially from the results contemplated
by these forward-looking statements due to a number of factors, including, but not limited to, the
possibility that (1) Medco and Express Scripts may be unable to obtain stockholder or regulatory
approvals required for the merger or may be required to accept conditions that could reduce the
anticipated benefits of the merger as a condition to obtaining regulatory approvals; (2) the length
of time necessary to consummate the proposed merger may be longer than anticipated; (3) problems
may arise in successfully integrating the businesses of Medco and Express Scripts; (4) the proposed
merger may involve unexpected costs; (5) the businesses may suffer as a result of uncertainty
surrounding the proposed merger; and (6) the industry may be subject to future risks that are
described in SEC reports filed by Medco and Express Scripts.
The foregoing list of factors is not exhaustive. You should carefully consider the foregoing
factors and the other risks and uncertainties that affect the businesses of Medco and Express
Scripts described in their respective Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q
and other documents filed from time to time with the Securities and Exchange Commission.
Additional Information and Where to Find It
In connection with the proposed merger, Express Scripts, Inc. will file with the SEC a registration
statement on Form S-4 that will include a joint proxy statement of Medco and Express Scripts, and a
prospectus of Express Scripts, as well as other relevant documents concerning the proposed merger.
Stockholders are urged to read the registration statement and the proxy statement/prospectus
contained therein regarding the merger when they become available and any other relevant documents
as well as any amendments or supplements to those documents, because they will contain important
information.
You will be able to obtain a free copy of the proxy statement/prospectus, as well as other filings
containing information about Medco and Express Scripts, at the SECs Internet site
(http://www.sec.gov). You will also be able to obtain these documents, free of charge, in the
Investor Relations portion of the Medco website at http://www.medcohealth.com under the heading
Investors and then under SEC Filings. Copies of the proxy statement/prospectus and the SEC
filings that will be incorporated by reference in the proxy statement/prospectus can also be
obtained, free of charge, by directing a request to Investor Relations, 100 Parsons Pond Drive,
Franklin Lakes, NJ, 07417, 201-269-3400.
Participants in Solicitation
Medco and Express Scripts and their respective directors and executive officers may be deemed to be
participants in the solicitation of proxies from the stockholders of Medco in connection with the
proposed merger. Information about the
22 | Ibid |
directors and executive officers of Medco and their
ownership of Medco common stock is set forth in the proxy statement for the Medco 2011 annual
meeting of stockholders, as filed with the SEC on Schedule 14A on April 8, 2011. Information about
the directors and executive officers of Express Scripts and their ownership of Express Scripts
common stock is set forth in the proxy statement for the Express Scripts 2011 annual meeting of
stockholders, as filed with the SEC on Schedule 14A on
March 21, 2011. Additional information regarding the interests of those persons and other persons
who may be deemed participants in the merger may be obtained by reading the proxy
statement/prospectus regarding the proposed merger when it becomes available. You may obtain free
copies of this document as described in the preceding paragraph.