CVS 2009 Annual Report Download - page 9

In 2010, a key focus will be adding protocol-driven
monitoring services for common chronic illnesses, such as
diabetes, hypertension, and high cholesterol. That will be
done in coordination with a patient’s treating physician
and is designed to improve adherence and outcomes.
We also expect to offer additional acute care services
and improved point of service lab tests. Under its new
president, Andrew Sussman, M.D., this business is moving
in the right direction.
CVS CAREMARK WILL CONTINUE TO BENEFIT FROM
NEW PRODUCTS AND BROAD INDUSTRY TRENDS
Looking ahead, we will continue to offer new and
innovative services that help attract and retain PBM
and retail customers. For example, we plan to expand
pharmacogenomic clinical and testing services for CVS
Caremark PBM clients through our ownership stake in
Generation Health. We want to improve care for patients
who are either non-responsive to their medications or
who experience adverse reactions as a result of their
genomic makeup. We expect to begin offering these
services during 2010.
We are currently in the process of transitioning our iScribe®
clients to Allscripts, the largest provider of e-prescribing
and electronic health record solutions. E-prescribing can
significantly reduce medication errors. With this partner-
ship, we hope to accelerate the adoption of e-perscribing
across our client base.
Broad industry trends will work in our favor as well, from
potential health care reform and an aging population to
new blockbuster and generic drug introductions. CVS
Caremark has been participating in the national debate
over legislation to reform the U.S. health care system. We
believe the right combination of reform and expansion
will be good for the nation. As the largest provider of
cost-effective pharmacy care in this country, we stand
ready to support this effort.
Looking at demographics, the number of people in the
United States who are 65 or older will jump to roughly
47 million by 2015 and to 55 million by 2020. This age
group fills an average of more than 25 prescriptions per
person annually – 30 percent more than people between
the ages of 55 and 64. That will increase utilization
dramatically for years to come and will help drive the
growth of both our PBM and retail businesses.
Of course, the opportunity in generics is enormous.
Nearly $100 billion in branded drug sales will lose patent
protection over the next six years. As a result, our GDR
could eventually approach 80 percent. That is expected
to further reduce costs for health plans, plan sponsors,
and their members while expanding our pharmacy
margins. We are also hopeful that Congress will pass
legislation that finally paves the way for a biogeneric
approval process.
As you can see, we’re very optimistic about our pros-
pects, both in the short-term and long-term. Pharmacy
health care in this country has a bright future, and we
believe our combined assets will lead to a bright future
for our company for years to come. On behalf of our
board of directors and our 211,000 colleagues across the
country, thank you for investing in CVS Caremark.
Thomas M. Ryan
Chairman of the Board,
President, and Chief Executive Officer
February 26, 2010
We will continue to offer new and innovative services
that help attract and retain PBM and retail customers.
“”
2009 Annual Report 5