Slide 1: Express Scripts Key Facts for Cigna Investors
Express Scripts KEY FACTS FOR CIGNA INVESTORS
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTSInformation included or incorporated by reference in this communication, and information which may be contained in other filings with the Securities and Exchange Commission (the “SEC”) and press releases or other public statements, contains or may contain forward-looking st
Slide 3: Important Information About the Transaction and Where to Find It
IMPORTANT INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND ITThis communication does not constitute an offer to buy or solicitation of an offer to sell any securities. In connection with the proposed transaction, the newly formed company which will become the holding company following the transac
Slide 4: Express Scripts: Premier Pharmacy Management Platform
30+ years of innovation and cost containment for clientsFocus on simultaneously improving affordability and clinical outcomesPuts medicine within reach of more than 83 million people Technology-focused solutions utilizing specialized care models and 1.4 billion patient interactions annually Provide
Slide 5: Innovative solutions to improve care and cost
Supply Chain / Formulary managementEncourage use of generics and affordable brandsNegotiate discounts from drug manufacturers Claims processingAuto-adjudication capabilities that process claims instantlyPromote patient safety through prospective drug utilization reviews to avoid adverse drug-drug in
Slide 6: Doing more to improve care and value
Doing more to improve care and value 6 Adjudication & Integrated DataServices~3,000 clientsemployers and plansponsors FormularyDevelopment~40,000unique medications 80Mmembers Clinical Support8.7Mphysician messagesand alerts Network Management Retail~70,000retail outlets Express Scripts PharmacySMHom
Slide 7: Key value creation levers
Key value creation levers 7 Visante, “Pharmacy Benefit Managers: Generating Savings for Plan Sponsors and Consumers,” February 2016, page 3 – Available at https://www.pcmanet.org/wp-content/uploads/2016/08/visante-pbm-savings-feb-2016.pdf Formulary management – the better constructed and managed a f
Slide 8: Significant value delivered to clients
Significant value delivered to clients 8 Visante, “The Return on Investment (ROI) on PBM Services,” November 2016 https://www.pcmanet.org/wp-content/uploads/2016/11/ROI-on-PBM-Services-FINAL.pdf PBMs help customers and plans save 40 – 50% on their annual drug and related medical costs compared to wh
Slide 9: Industry trends create additional market opportunities
Exclusive Specialty Home Delivery Narrow Networks Step Therapy Do you have a focused network for specialty drugs?Yes – 65%No – 35% Do you have a home delivery program in place?Incentivized – 33%Mandatory – 53%Neither – 14% Do you have a preferred retail pharmacy network design?Yes – 41%No – 59% Do y
Slide 10: How Express Scripts is paid for the value it delivers
Additional capabilities with Cigna’s and other health plan client’s medical will allow Express Scripts to further its value proposition by strengthening patient-physician relationships and providing cost predictability, affordability and superior health outcomes to clients, thereby increasing value
Slide 11: Purchase discounts and rebates
Purchase discounts and rebates 11 Supplemental Statement of the Pharmaceutical Care Management Association (PCMA) to the Federal Trade Commission on: “Understanding Competition in Prescription Drug Markets: Entry and Supply Chain Dynamics”Written Testimony of Joanna Shepherd, Ph.D., Emory University
Slide 12: Investing in tools, technology and transparency
The combined company will be able to make meaningful investments in tools, technology and digital services that improve affordability and increase cost transparency and predictability at the end-consumer level Express Scripts recognizes and continues to be responsive to the evolving market need for
Slide 13: Mix of Express Scripts clients
Mix of Express Scripts clients 13 By Number of Lives, 2017 By Revenue, 2017 (1) Excludes Other Business Operations and certain other subsidiariesIncludes revenues from dispensing specialty prescription drugs from other retail pharmacies Health Plans Anthem Commercial Federal Medicare & Medicaid Othe
Slide 14: Express Scripts' profitability
Express Scripts’ profitability 14 Profitability comparisons among competitors is difficult. A number of factors including innovation, expertise, operating cost efficiencies, asset mix, client mix and corporate structure all contribute to the non-comparability of margin profiles:Express Scripts has a
Slide 15: Express Scripts' enterprise value initiative
Express Scripts’ enterprise value initiative 15 In 3Q17, Express Scripts launched a multi-year, enterprise-wide initiative to transform its organization by 2021 Investing $600-650MM for long-term success Savings: $550 – 600MM annually by 2021 Improved Customer Engagement Improved Physician Engagemen
Slide 16: Enterprise value initiative – Four components
Enterprise value initiative – Four components 16 1) Increased Customer Engagement through investments in digital assets Benefits Improved ability for first-time resolution and reduction in unnecessary rework and phone calls (lower call volumes)Higher net promoter scoresImproved resource allocation (
Slide 17: In conclusion…
In conclusion… 17 Express Scripts offers a diverse and high-performing portfolio that delivers exceptional value to clients and customers (1.5% pharmacy trend and over $30 billion in savings through its clinical programs)Client and customer satisfaction are high as measured by client retention rates