Express Scripts 2010 Annual Report Download - page 16

Express Scripts 2010 Annual Report 12
This year marks the silver anniversary of Express Scripts.
Since 1986, everything we’ve done, every business decision
we’ve made, every product we’ve introduced, has been
based on our foundation of aligning our goals with those
of our plan sponsors and their members.
And we never stand still. We’ve grown, both organically
and through acquisitions, and we’ve become stronger.
We’ve repeatedly demonstrated our ability to help our
clients solve for issues in an industry that’s ever changing,
ever challenging.
The past year was no exception. We’ve ensured that
processes and talent are in place enterprise-wide to
capitalize on future opportunities, and we’ve expanded
our physical facilities. We’ve enhanced our capabilities
to understand human behavior and how that behavior
impacts healthcare costs, introducing product offerings
that are proven, practical and appropriate for members
and plan sponsors alike.
Moving forward, we’re prepared to continue to manage
the toughest issues facing healthcare. To help in that
effort, we built the 224,000 sq. ft. Technology &
Innovation Center. The St. Louis facility brings together
“mind, method and machine” in a manner that ensures
the continued development of innovative products
— and
will help sustain a safe and affordable pharmacy benefi t.
Select Solutions — Powered by ChoiceSM is but one
example. This suite of products addresses the toughest
pharmacy-benefi t issues faced by sponsors. Yet it gives
members the choice they want. It’s proving to be a
win-win answer that’s unique in the industry.
Specialty Benefi t Services (SBS) is another fi rst-in-the-
industry offering. SBS enhances care, guarantees savings,
and reduces wasteful expenditure in an area of healthcare
coverage on a fast track to becoming almost unaffordable for
plan sponsors. Express Scripts is a leader in managing care
and site utilization, along with claims for medications billed
under both the pharmacy and the medical benefi t. Amid this
rapidly expanding area of cost, we help plan sponsors provide
quality care to patients with very serious diseases. Another
win-win, another Express Scripts differentiator.
Also of note in 2010 was the successful integration
of the NextRx PBM business. When we announced
the acquisition of NextRx in 2009, we made several
commitments. To WellPoint, we promised a high quality,
carefully executed implementation process onto our single
platform. To our current clients, we vowed uninterrupted
high-level service to them and their patients. To our
shareholders, we committed to the generation of more
than $1 billion in incremental EBITDA once the
integration was complete.
I am pleased to report that, by remaining true to what we
do best, we delivered on all three of those commitments.
These achievements are proof that Express Scripts
continues to bring value to our clients. Our ongoing
mandate to deliver the right drug at the right time for
the right price resulted in a record-high generic fi ll rate of
72.7% in the fourth quarter of 2010. We processed more
than 750 million adjusted claims — also a record for the
year. Our adjusted earnings per share and cash fl ow from
operations set records, too, while our stock performance
outpaced peers and the overall market.
Across our book of business, we’re focused on substantial
opportunities for collaboration in clinical offerings, data
integration, therapy adherence and removing waste from
healthcare. All of these areas have the potential to further
drive substantial value. The positive impact on the health
of our members will be greater than ever.
Massive changes are on the horizon for our industry,
including healthcare reform and the upcoming wave of
brand-name drugs losing patent protection. Meanwhile,
healthcare costs continue to rise. In this environment,
the PBM for the future has to be nimble. And it has to be
smart enough to infl uence events and forward thinking
enough to interpret events even before they occur.
We are that PBM. We’ve shown it in our work with
our clients and our record of driving out waste while
improving care. All indicators show that we’re only
getting stronger and better at what we do.
The leading indicator for a strong future is the
caliber of our employees. Our people have a passion
for what they do — they know their work is vital. Our
people know, no matter what their role in the company,
that caring for a member’s health is what matters most.
It’s our number-one priority.
It’s the commitment and performance of our people,
every single day, which drives our success. We’ll continue
to build shareholder value by working with passion and
dedication to execute on our core principle: We make the
use of prescription drugs safer and more affordable.
George Paz
Chairman and CEO
To Our Stockholders