Slide 1: Cigna Reiterates Support for Proposed Merger with Express Scripts
CIGNA REITERATES SUPPORT FOR PROPOSED MERGER WITH EXPRESS SCRIPTS August 2018
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 sell or solicitation of an offer to buy any securities. In connection with the proposed transaction, the newly formed company which will become the holding company following the transac
Slide 4: Cigna Strongly Disagrees With Mr. Icahn
Cigna Strongly Disagrees With Mr. Icahn – His Objection to the Express Scripts Merger is Not in the Best Interest of Cigna Shareholders 4 As of close of business on August 6, 2018, Mr. Icahn holds only 0.56% of Cigna shares outstanding and has a “substantial” short position in Express ScriptsMr. Ica
Slide 5: Mr. Icahn's Assertions are Value Destructive and Misguided
Mr. Icahn’s Assertions are Value Destructive and Misguided 5 A Mr. Icahn asserts that Cigna is overpaying for a highly challenged Express Scripts that is facing existential risks B C Mr. Icahn asserts that the problem of prescription drug pricing in America must be addressed by eliminating conflicti
Slide 6: Mr. Icahn demonstrates a lack of understanding of Cigna's business model
Mr. Icahn demonstrates a lack of understanding of Cigna's business model and how Cigna wins in the marketplaceThe integrated medical, pharmacy and behavioral services model has been the cornerstone of Cigna’s long-term strategyCigna will not be able to inoculate itself from changes in the dynamic ma
Slide 7: Acquiring Express Scripts is Strategically and Financially Attractive
7 Expanding Cigna’s Capabilities and Distribution Reach by Acquiring Express Scripts is Strategically and Financially Attractive A The combined company will be well-positioned to adapt to changing competitive landscape “David Cordani CI CEO has built more management credibility in our view with the
Slide 8: PBMs Provide Economic Value Beyond Rebates
8 B PBMs Provide Economic Value Beyond Rebates, and Current Rebate Concerns are Known and Manageable Potential changes to rebate regulation are not newPotential changes to Anti-Kickback statute safe harbor rules pertain to government programs and have been suggested in various forms Additionally, ch
Slide 9: PBMs Provide Economic Value Beyond Rebates, Rebate Concerns Manageable
“Curbing rebates is seemingly at odds with the administration’s push on Tuesday to expand them through price negotiation.”– Anna Edney (8/7/18) PBMs Provide Economic Value Beyond Rebates, and Current Rebate Concerns are Known and Manageable 9 On August 7, 2018, CMS announced a new policy to expand t
Slide 10: Combination With Express Scripts Will Deliver Greater, Sustained Shareholder Value
Combination With Express Scripts Will Deliver Greater, Sustained Shareholder Value 10 From October 2017 to deal announcement in March 2018, at the direction and with the oversight of Cigna’s Board, Cigna conducted significant due diligence. Points of focus included:The standalone valuation of Expres
Slide 11: Cigna believes its current stock price represents a temporary dislocation
Cigna believes its current stock price represents a temporary dislocation and presents an outstanding opportunity for future, significant shareholder returnUnderperformance by acquirers is common in MCO M&A deals with pending DOJ reviews UnitedHealth Group – a peer with an integrated MCO and PBM bus
Slide 12: The Investment Community Clearly Supports the Combination
The Investment Community Clearly Supports the Combination 12 Note: Permission to use quotes was not sought or obtained; Source: Wall Street Analyst Research Reports “We believe that the ongoing shift to value-based pricing models could also lessen the reliance on rebates and better align economic in
Slide 13: Combined Company Will Grow Shareholder Value and Transform Healthcare
Combined Company Will Grow Shareholder Value and Transform Healthcare in an Increasingly Demanding Healthcare Environment 13 A B C Cigna's Board and management team believe that its proposed merger with Express Scripts is in the best interest of shareholders and recommend that Cigna shareholders vot