CVS 2015 Annual Report Download - page 5

adding the Med D lives we manage for our health plan
clients, the total rises to more than 11 million Med D
lives under management, up 41 percent from the prior
year, and making us the clear leader in the Med D space.
Through our enterprise clinical capabilities, we have
an unmatched ability to drive Med D Star ratings—for
SilverScript as well as our health plan clients’ offerings.
In fact, SilverScript was the largest PDP to achieve a
four-star rating, and 73 percent of our clients’ lives were
enrolled in a high performing plan for the 2016 plan year.
Our specialty business, with its breadth of offerings,
has been a key driver of revenue gains
Throughout 2015, we continued to capture an outsized
share of the specialty market, the industry’s fastest-grow-
ing sector. Our CVS SpecialtyTM business is the nation’s
largest, and our growth has outpaced both the industry
overall and that of our nearest competitor. In 2015,
revenues from the specialty drugs we dispensed and
managed across the enterprise totaled nearly $40 billion,
increasing 32 percent over the prior year.
CVS Specialty offers all the traditional capabilities that
payors expect from a specialty pharmacy. We’ve raised
the bar as well by offering a unique range of differen-
tiated solutions through our integrated model. Take
our highly popular Specialty ConnectTM offering, which
gives specialty patients the option of picking up their
medications at any CVS Pharmacy® location or having
the medication delivered by mail. More than 54 percent
of our specialty patients prefer in-store pickup—along
with the opportunity to consult with a pharmacist face-
to-face—and we’ve served more than 100,000 of them
in this way since we rolled out the program in 2014.
Among specialty patients that opt for in-store pickup,
we’ve seen adherence improve by 11.4 percent.
Our differentiated offerings also include Accordant® rare
disease case management and Coram® infusion services,
both of which make CVS Specialty particularly attractive
to manufacturers who want to launch new drugs through
limited distribution networks. Only CVS Specialty has the
NovoLogix® technology platform, enabling us to help our
clients manage all specialty medications including those
paid under the medical benefit.
Retail pharmacy growth has outpaced our competitors
while the Target deal further broadens our reach
At CVS Pharmacy, same store sales increased 1.7 percent
in 2015. Pharmacy same store sales rose 4.5 percent,
while front store same store sales decreased 5 percent,
driven primarily by our exit from tobacco sales in 2014.
CVS Pharmacy filled 21.6 percent of all retail prescriptions
in 2015 to lead the U.S. retail drugstore market. In fact,
our retail prescription business has grown at twice the
rate of the overall market since 2010.
3
2015 Annual Report
Gross new business
wins to start 2016
n 84% Health Plan
n 12% Employer
n 4% Government
With a client retention rate
of 98%, net new business
for 2016 totaled $12.7B
$40billion
in revenues from specialty drugs
dispensed and managed across the enterprise
CVS Pharmacy filled
21.6%
of all retail prescriptions
in 2015 to lead the U.S. retail
drugstore market
Total
$14.8B