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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-99.5 - EX-99.5 - MEDCO HEALTH SOLUTIONS INC | y92523exv99w5.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 99.7
Independent pharmacies have enjoyed robust growth in recent years. The Express Scripts-Medco
merger will drive increased sales volume to independent pharmacies and create additional
opportunities for partnerships that help improve patient adherence and create new sources of value
for independent pharmacies to offer their local customers. The Express Scripts-Medco combination
will collaborate with independent pharmacies to help them more effectively compete against the
large chain and big box pharmacies.
The Express Scripts-Medco combination will help drive increased sales volume to independent
pharmacies.
| In 2010, Medco managed 630 million retail prescriptions and Express Scripts managed 602 million retail prescriptions.1,2 |
| A network of more than 60,000 retail pharmacies which represent more than 95% of all United States retail pharmacies participates in one or more of Express Scripts and Medcos networks.3 |
| Even as the Express Scripts-Medco combination seeks to drive efficiency in the health care system, retail pharmacies will always play a crucial, complementary role, particularly for acute and newly diagnosed conditions. |
The Express Scripts-Medco combination will help independent pharmacists improve patient adherence.
| The Express Scripts-Medco combination will combine cutting-edge capabilities aimed at improving patient adherence, which means that the millions of patients who use independent pharmacies will be more likely to complete their full course of prescription treatment improving overall health. |
| The Express Scripts-Medco combination will create additional partnership opportunities that help independent pharmacies improve their own customers adherence, while creating new sources of value. |
| Through these partnership opportunities, independent pharmacists receive additional training and compensation to provide a higher level of patient care, delivering a new revenue opportunity to independent pharmacies through enhanced services. |
| For example, Medcos Cognitive Care Initiative a 26-week program 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 pharmacists.4 |
| Community pharmacists received training to provide expert patient counseling using techniques that improved adherence for 74% of these gaps.5 |
| As a result of these techniques, community pharmacists filled 48% more prescriptions6 and closed 27% more adherence gaps7 than control pharmacies. |
1 | Medco Drug Trends, 2010 | |
2 | Express Scripts Corporate Overview | |
3 | Express Scripts 2010 Annual Report | |
4 | Medco Health Solutions Illinois Pilot Project | |
5 | Ibid | |
6 | Ibid |
| The success of this pilot program has led to additional partnerships with community pharmacists in New Mexico and Florida. |
The combined Express Scripts-Medco will help level the playing field for independent pharmacies
competing with large and powerful chain and big box retail pharmacies.
| Nearly 4 billion prescriptions were filled in 2010 with more than half filled at chain stores such as CVS and Walgreens.8 |
| For every one prescription filled by mail order, eight are filled by large chain stores. |
| Between 2009 and 2010, the volume of prescriptions filled by chain stores grew twice as fast as mail order.9 |
| For the Express Scripts-Medco combination to succeed, it must be able to effectively compete with the chains, which creates a strong incentive for partnership with independent pharmacies. |
Independent pharmacies are thriving.
| Independent pharmacies filled 748.3 million prescriptions last year, nearly three times more than were filled through mail order delivery services, such as those offered by Express Scripts and Medco. |
| Between 2009 and 2010, the number of independent community pharmacies grew by almost 400, to more than 23,000, representing a $93 billion industry. |
| The average independent pharmacy increased sales by 3.7% in 2009, from $3.88 million to $4.03 million.10 |
| Pharmacy profits have doubled since 1999, with average profits per pharmacy of almost $1 million.11 |
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
7 | Medco Health Solutions Illinois Pilot Project | |
8 | Pembroke Consulting, April 2011 | |
9 | Ibid. | |
10 | National Community Pharmacists Association, 2010 NCPA Digest, October 2010 | |
11 | Drug Channels, Owning a Pharmacy: Still Pretty Profitable, January 25, 2011 (Analysis of 2010 NCPA Digest Data) |
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 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.