CVS 1999 Annual Report Download - page 8

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6
CVS Corporation
Pharmacy Solutions
CVS is leading the way in providing new
pharmacy solutions for its customers. As a
result, we have seen significant growth in the
pharmacy business; a 24.4 percent increase in
1999 retail pharmacy sales to $10.6 billion, now
representing 59 percent of our total revenues;
and a similarly positive outlook for the future.
The demand for prescription drugs is rising for
a variety of reasons. Managed care organizations
are relying increasingly on pharmaceuticals as
the first line of defense in managing illness and
injury. New drugs are entering the market at a
breathtaking pace. Pharmaceutical makers also
are marketing those drugs more directly and
aggressively to consumers than ever before.
Generic drugs, which generate higher gross
profit for CVS than branded drugs, will increase
dramatically in the coming years as well. The
Food and Drug Administration estimates that
some $6.2 billion worth of drugs sold under
brand names will be coming off patent in the
year 2000 alone, more than four times the 1999
level. Those patent expirations pave the way for
considerable generic drug introductions, which
lower costs for our customers.
The aging population in the United States
also translates into an increased demand for
pharmaceuticals. Research shows that an
average 60-year-old takes 16 prescriptions
per year compared with six taken by an average
30-year-old.
Increased demand for pharmaceuticals
represents only half of the growth story. CVS
has leveraged innovative ideas and cutting-
edge technology to capitalize on those growth
opportunities, resulting in an industry-leading
drugstore chain that captures new business by
serving customers the way they want to be served.
Total healthcare solutions for the way we live.
CVS/pharmacy
CVS pharmacies provide a total healthcare solution
for patients and dispense more prescriptions than
any other pharmacy in America.
Each day, more than 12,000 CVS
pharmacists help us fulfill our mission
to help people live longer, healthier,
happier lives by providing professional
expertise and personal care.
CVS is leading the way in providing pharmacy solutions. We have leveraged innovative ideas