CVS 2005 Annual Report Download - page 9

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1
7
Benefiting from Pharmacy Trends
✛The next few years are shaping up to be among
the best of times for the retail pharmacy
industry. According to IMS Health, pharmacy
sales are expected to continue growing at a
5 to 8 percent compound annual rate. The
increased use of pharmaceuticals as the first
line of defense in health care, the introduction
of new and better drug therapies, and an aging
population requiring more prescription drugs are
all important drivers. As the No. 1 drugstore
chain in America, CVS certainly stands to benefit.
Blockbuster drugs like Zocor®, Zoloft®, and
Pravachol®are among the approximately
$15 billion in branded drug sales expected to
lose patent protection in 2006 alone. That
should only increase the already rising use of
lower-cost, generic equivalents. By making it
easier for 42 million eligible seniors to afford the
medicines they need, the launch of the Medicare
Part D prescription drug benefit also means that
prescription utilization is likely to grow. More
than 20 million people have already signed up,
including an estimated 3.5 million people who
did not previously have prescription drug
coverage. CVS is playing a key role at more than
5,400 CVS/pharmacy stores and through our
PharmaCare pharmacy benefits manager.