CVS 2012 Annual Report Download - page 49

CVS CAREMARK 2012 ANNUAL REPORT
47
Cautionary Statement Concerning Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 (the “Reform Act”) provides a safe harbor for forward-looking state-
ments made by or on behalf of CVS Caremark Corporation. The Company and its representatives may, from time to time,
make written or verbal forward-looking statements, including statements contained in the Company’s filings with the
Securities and Exchange Commission (“SEC”) and in its reports to stockholders. Generally, the inclusion of the words
“believe,” “expect,” “intend,” “estimate,” “project,” “anticipate,” “will,” “should” and similar expressions identify statements
that constitute forward-looking statements. All statements addressing operating performance of CVS Caremark Corporation
or any subsidiary, events or developments that the Company expects or anticipates will occur in the future, including
statements relating to revenue growth, earnings or earnings per common share growth, adjusted earnings or adjusted
earnings per common share growth, free cash flow, debt ratings, inventory levels, inventory turn and loss rates, store
development, relocations and new market entries, PBM business and sales trends, the Company’s ability to attract or
retain customers, Medicare Part D competitive bidding and enrollment, new product development and the impact of
industry developments, as well as statements expressing optimism or pessimism about future operating results or events,
are forward-looking statements within the meaning of the Reform Act.
The forward-looking statements are and will be based upon management’s then-current views and assumptions regarding
future events and operating performance, and are applicable only as of the dates of such statements. The Company under-
takes no obligation to update or revise any forward-looking statements, whether as a result of new information, future
events, or otherwise.
By their nature, all forward-looking statements involve risks and uncertainties. Actual results may differ materially from
those contemplated by the forward-looking statements for a number of reasons, including, but not limited to:
•฀ ฀Risks฀relating฀to฀the฀health฀of฀the฀economy฀in฀general฀and฀in฀the฀markets฀we฀serve,฀which฀could฀impact฀consumer฀
purchasing power, preferences and/or spending patterns, drug utilization trends, the financial health of our PBM clients
or other payors doing business with the Company and our ability to secure necessary financing, suitable store locations
and sale-leaseback transactions on acceptable terms.
•฀ ฀Efforts฀to฀reduce฀reimbursement฀levels฀and฀alter฀health฀care฀nancing฀practices,฀including฀pressure฀to฀reduce฀reimburse-
ment levels for generic drugs.
•฀ ฀The฀possibility฀of฀PBM฀client฀loss฀and/or฀the฀failure฀to฀win฀new฀PBM฀business.
•฀ ฀Risks฀related฀to฀the฀frequency฀and฀rate฀of฀the฀introduction฀of฀generic฀drugs฀and฀brand฀name฀prescription฀products.
•฀ ฀Risks฀of฀declining฀gross฀margins฀in฀the฀PBM฀industry฀attributable฀to฀increased฀competitive฀pressures,฀increased฀client฀
demand for lower prices, enhanced service offerings and/or higher service levels and market dynamics and regulatory
changes that impact our ability to offer plan sponsors pricing that includes the use of retail “differential” or “spread.”
•฀ ฀Regulatory฀changes,฀business฀changes฀and฀compliance฀requirements฀relating฀to฀our฀participation฀in฀Medicare,฀Medicaid฀
and other federal and state government-funded programs, including requirements and restrictions imposed by CMS and
other government agencies, as applicable, relating to our participation in the Medicare Part D program and other
government-funded programs.
•฀ ฀Possible฀changes฀in฀industry฀pricing฀benchmarks฀used฀to฀establish฀pricing฀in฀many฀of฀our฀PBM฀client฀contracts,฀pharma-
ceutical purchasing arrangements, retail network contracts, specialty payor agreements and other third party payor contracts.