Cvs Health Corporation · NYSE:CVS
Cvs Health — Investor Day (June 2019)
20 slides from Cvs Health's investor day presentation, Jun 4, 2019
Slide 1: Evolving Strategy for a Changing Marketplace
Evolving Strategy for a Changing Marketplace Derica Rice Executive Vice President & President, CVS Caremark
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. By their nature, all forward-looking statements involve risks and uncertainties. Actual
Slide 3: Agenda
Agenda Leading PBM platform today and tomorrow Performance update Four pillars of strategic growth 3
Slide 4: Client and member value delivered
Client and member value delivered 2 2 2016 – 2018 In 2018 >$141B >$18.3B 44% ~2 out of every 3 Client pharmacy Client medical savings Clients saw their net Members spent savings from improved adherence Rx drug prices decline <$100 on Rxs Innovative solutions drive ongoing value and client satisfacti
Slide 5: Caremark continues to pioneer industry-leading approaches to transform healthcare
Caremark continues to pioneer industry-leading approaches to transform healthcare Drug spend Operational Specialty Enterprise-wide management excellence outperformance innovation Formulary Seamless Scale / Maintenance Choice innovations on-boarding purchasing Specialty Connect Proven purchasing Medi
Slide 6: Agenda
Agenda Leading PBM platform today and tomorrow Performance update Four pillars of strategic growth 6
Slide 7: Strong fundamentals, transient challenges
Strong fundamentals, transient challenges Drivers / Challenges1 2018 2019 2020 2021 Net new contracts Centene carve-in Rebate guarantees Client pricing Improvement to COGS Specialty 7
Slide 8: 2020 selling season results year-to-date
2020 selling season results year-to-date 2020 Year-to-date Selling Season Revenue Impact1,3 (As of May 2019) +$3.2B ($3.8B) ($8.1B) ($8.7B) Gross Centene Other Net new business carve-in non-renewals new business Note: Anthem revenue recorded on a net basis vs. gross. 8
Slide 9: Agenda
Agenda Leading PBM platform today and tomorrow Performance update Four pillars of strategic growth 9
Slide 10: CVS Caremark is well positioned for growth
CVS Caremark is well positioned for growth 1. New economic 2. Enterprise 3. New best-in- 4. New open models Modernization class specialty platform solutions solutions Drug spend Operational Specialty Enterprise-wide management Excellence outperformance innovation 10
Slide 11: A full range of pricing model options for clients
1. NEW ECONOMIC MODELS Clients A full range of pricing model options Cost-Plus Traditional Guaranteed Risk-Based Net Cost for clients + Transparency, predictability, and low net cost Industry leading Real-time prescription Zero-copay Point-of-sale solutions benefit information chronic drug list reba
Slide 12: Aligning for Growth: Enhancing the member experience
2 . E N T E R P R I S E M O D E R N I Z AT I O N Aligning for Growth: Enhancing the member experience Member Proactive Real-time Best-in-class Clinical secure experience communications member self-service messaging improvements to providers information tools Expected Lower member Minimized Physician
Slide 13: CVS Health projected to outpace the industry in Specialty Rx growth
3 . S P E C I A LT Y S O L U T I O N S CVS Health projected to outpace the industry in Specialty Rx growth $28B $24B $19B $20B CVS Caremark Specialty Rx $13B 11% Managed CVS Specialty Rx $43B $32B $35B $37B Dispensed $27B CAGR Projected1,4 CVS Specialty Rx Dispensed 2015 2016 2017 2018 2019P 9% Spec
Slide 14: Delivering industry leading specialty results
3 . S P E C I A LT Y S O L U T I O N S 1,7 Delivering industry leading specialty results 1.7% 80% 5.3% 60M+ Specialty unit Patients More patients Novologix has highest price growth digitally optimally adherent adoption of any specialty management engaged with Secure Messaging medical solution 14
Slide 15: CVS Health continues to develop best-in-class specialty solutions
3 . S P E C I A LT Y S O L U T I O N S CVS Health continues to develop Innovative specialty solutions focused on: best-in-class specialty solutions Patient care to fuel growth • Provider and patient engagement and provider connectivity • EHR connectivity • Creating competition with formulary Drive a
Slide 16: CVS Caremark has successfully delivered programs and enterprise innovation
4 . N E W O P E N P L AT F O R M S O L U T I O N S 75+ 1,400+ CVS Caremark has Health Plan Employer clients clients successfully delivered programs and enterprise innovation to our clients and health care stakeholders8 90+ 94M Health Systems Consumers including provider CVS Caremark organizations me
Slide 17: Continuing to solve the biggest health care challenges for all of our stakeholders
4 . N E W O P E N P L AT F O R M S O L U T I O N S Continuing to solve the biggest health care challenges for all of our stakeholders Transformation CVS Caremark open platform CVS Caremark solutions distribution channel Comprehensive chronic care and disease management New consumer facing products D
Slide 18: Comprehensive oncology solution matches patients with optimal treatment options
4 . N E W O P E N P L AT F O R M S O L U T I O N S Comprehensive oncology solution matches Oncology accounts for: patients with optimal treatment options 9 ~25% Align physician Enhance patient Improve of total specialty drug spend (medical and incentives experience care quality pharmacy benefit) 10
Slide 19: Well positioned for growth and innovation
K E Y TA K E AW AY S Well positioned for growth and innovation Leading PBM platform today and tomorrow Evolving strategy for a changing marketplace Four pillars of strategic growth: New economic models, enterprise modernization, best-in-class specialty solutions, open platform solutions 19
Slide 20: Endnotes
Endnotes 1. Currently enacted laws and regulations were used in all the Company’s projections. 2. CVS Health Enterprise Analytics; 2019. 2018 CVS Health Trend Report. Members are only utilizing members. 3. CVS Health Finance, Selling Season Report (YTD as of 5/24/2019) 4. Internal Specialty Finance;