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7Express Scripts 2013 Annual Report
healthier decisions and healthier outcomes. Consumerology®, or the advanced application of the behavioral sciences to
healthcare, optimizes decision mechanisms and helps make better decisions easier. Therapeutic Resource CentersSM give
patients access to specialist pharmacists and nurses to close gaps in care. By leveraging data from over one billion annual
claims, the Company drives actionable data to the point of decision in an effort to enhance safety, effectiveness and
affordability.
Plan sponsors who are more aggressive in taking advantage of our effective tools and comprehensive array of
solutions to manage drug spend have seen reductions in their prescription drug trend while preserving healthcare outcomes.
Greater use of generic drugs and lower-cost brand drugs has resulted in significant reductions in spending for commercially
insured consumers and their employers.
We have organized our operations into two business segments based on products and services offered: PBM and
Other Business Operations.
Our PBM segment primarily consists of the following products and services:
• retail network pharmacy administration
• home delivery pharmacy services
• benefit design consultation
• drug utilization review
• drug formulary management
• clinical solutions to improve health outcomes, such as adherence, case coordination and personalized medicine
• a flexible array of Medicare Part D, Medicaid and Health Insurance Marketplace (“Public Exchange”)
offerings to support clients’ benefits
• specialty pharmacy, including the distribution of fertility pharmaceuticals requiring special handling or
packaging
• administration of a group purchasing organization
• consumer health and drug information
The Other Business Operations segment primarily consists of the following products and services:
• distribution of pharmaceuticals and medical supplies to providers and clinics
• scientific evidence to guide the safe, effective and affordable use of medicines
Our revenues are generated primarily from the delivery of prescription drugs through our contracted network of
retail pharmacies, home delivery of prescription drugs and specialty pharmacy services and Other Business Operations
services. Revenues from the delivery of prescription drugs to our members represented 98.8% of revenues in 2013, 99.0% in
2012 and 99.4% in 2011. Revenues from services, such as the fees associated with the administration of retail pharmacy
networks contracted by certain clients, medication counseling services and certain specialty distribution services, comprised the
remainder of our revenues.
Prescription drugs are dispensed to members of the health plans we serve primarily through networks of retail
pharmacies that are under non-exclusive contracts with us and through home delivery fulfillment pharmacies, specialty drug
pharmacies and fertility pharmacies that we operate. More than 68,000 retail pharmacies, which represent over 95% of all
United States retail pharmacies, participated in one or more of our networks at December 31, 2013. The top ten retail pharmacy
chains represent approximately 60% of the total number of stores in our largest network.
Express Scripts, Inc. was incorporated in Missouri in September 1986, and was reincorporated in Delaware in
March 1992. Aristotle Holding, Inc. was incorporated in Delaware on July 15, 2011. Aristotle Holding, Inc. was renamed
Express Scripts Holding Company concurrently with the consummation of the Merger.
Our principal executive offices are located at One Express Way, Saint Louis, Missouri, 63121. Our telephone
number is 314.996.0900 and our website is www.express-scripts.com. Information included on our website is not part of this
annual report.