CVS 2009 Annual Report Download - page 45

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• The risks relating to adverse developments in the health
care or pharmaceutical industry generally, including, but not
limited to, developments in any investigation related to the
pharmaceutical industry that may be conducted by any
governmental authority; and
• Other risks and uncertainties detailed from time to time in
our filings with the Securities and Exchange Commission.
The foregoing list is not exhaustive. There can be no
assurance that the Company has correctly identified and
appropriately assessed all factors affecting its business.
Additional risks and uncertainties not presently known to the
Company or that it currently believes to be immaterial also
may adversely impact the Company. Should any risks and
uncertainties develop into actual events, these developments
could have material adverse effects on the Company’s busi-
ness, financial condition and results of operations. For these
reasons, you are cautioned not to place undue reliance on
the Company’s forward-looking statements.
• Our ability to realize the anticipated long-term strategic
benefits from the Caremark Merger;
• Our ability to realize the planned benefits associated with
the Longs Acquisition in accordance with the expected
timing;
• The continued efforts of health maintenance organizations,
managed care organizations, pharmacy benefit management
companies and other third-party payors to reduce prescription
drug costs and pharmacy reimbursement rates, particularly
with respect to generic pharmaceuticals;
• The possibility of client loss and/or the failure to win new
client business;
• Risks related to the frequency and rate of the introduction of
generic drugs and brand name prescription products;
• The effect on our Pharmacy Services business of a declining
margin environment attributable to increased competition in
the pharmacy benefit management industry and increased
client demands for lower prices, enhanced service offerings
and/or higher service levels;
• Risks related to our inability to earn and retain purchase
discounts and/or rebates from pharmaceutical manufacturers
at current levels;
• Risks regarding the impact of the Medicare prescription drug
benefit on our business;
• Risks related to the change in industry pricing benchmarks
that could adversely affect our financial performance;
• Increased competition from other drugstore chains, super-
markets, discount retailers, membership clubs and Internet
companies, as well as changes in consumer preferences
or loyalties;
• Risks related to proposed health care reform;
• Litigation, legislative and regulatory risks associated with
our business or the retail pharmacy business, retail clinic
operations and/or pharmacy benefit management industry
generally;
• The risks relating to changes in laws and regulations,
including changes in accounting standards and taxation
requirements (including tax rate changes, new tax laws
and revised tax law interpretations);
2009 Annual Report 41