Express Scripts 2013 Annual Report Download - page 4

Express Scripts 2013 Annual Report 4
needs of their members. We also have the most
exclusive distribution relationships for specialty drugs.
In both settings, we are the PBM of choice.
Just as patients prefer a cardiologist to treat heart
disease, we believe specialization is important in
pharmacy. Our pharmacists have deep expertise not
only in rare disease states like peripheral arterial
hypertension and hemophilia, but also in more
common illnesses such as multiple sclerosis and
cancer. Our clients understand the value this brings
because their members get better, more clinically
driven treatment than they would anywhere else.
There is no doubt that newer drugs for specialty
conditions have made a positive impact for patients.
Unfortunately, these drugs are also on an unsustainable
cost trajectory. By 2017, we expect that 50 percent
of client expenditures will be for specialty drugs, even
though they make up a tiny fraction of prescription
volume. When clients use our specialty solutions and
aggressively manage their benefi t, they can cut their
specialty spend in half. It’s yet another example of how
our business model of alignment lowers the client’s
cost burden, sustains access to medications, and
drives our growth.
Another growing area of client concern is around the
impact of healthcare reform and the added burden
of government regulations. The Affordable Care Act
and the introduction of health insurance exchanges
have dramatically altered the landscape. Payers need
a partner with the size and scale to take on regulatory
compliance while nimbly adapting to rapid changes. In
short, they need Express Scripts.
The future means taking pharmacy to patients. We
believe each member represents a point-of-care for
pharmacy. For Express Scripts, that’s around 90
million members. Our pharmacy experience extends
from a member’s hands
— a mobile device equipped
with our app — to their home, as we conveniently
deliver maintenance medications through the mail. We
have an unprecedented opportunity to grow our home
delivery business by leveraging consumer preferences.
As we look ahead, we need to evolve our team to
capitalize on future opportunities. Earlier this year, we
named Tim Wentworth as President. He has more than
30 years of experience in sales, human resources and
account management across a number of companies.
Tim joined us when we merged with Medco and served
as our Senior Vice President of Sales and Account
Management before being promoted into his new
role. He’ll focus on driving organic growth through
operational excellence and delivering best-in-class
service to clients and members. He and I will work
together with our leadership team to execute on a
strategy that wins today and in the future.
In February, we appointed Cathy Smith as our
Executive Vice President and Chief Financial Offi cer.
Cathy joined Express Scripts from Walmart, where she
was Executive Vice President of Strategy and Chief
Financial Offi cer for Walmart International. Cathy has
a solid track record of success at leading companies in
diverse industries, and her background is a strong fi t
for our company.
I have great enthusiasm for the future of our company
and our industry and what we can do to solve the
healthcare challenges our clients and patients face.
No one matches our breadth and depth of solutions.
No one delivers better service to members. And no
company is better positioned to manage the complex
future of healthcare than Express Scripts.
I hope you share my excitement and I thank you for
your continued support.
George Paz
Chairman and CEO