Express Scripts 2014 Annual Report Download - page 9

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Express Scripts 2014 Annual Report
Clientswhoaggressivelytakeadvantageofoureffectivetoolsandcomprehensivesetofsolutionstomanagedrug
spendhaveseenreductionsintheirprescriptiondrugcosttrendandimprovedhealthcareoutcomes.Greateruseofgeneric
drugsandlower-costbranddrugshaveresultedinsignificantreductionsinspendingforcommerciallyinsuredconsumersand
theiremployers.
Wehave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:
• clinicalsolutionstoimprovehealthoutcomes,suchasadherence,casecoordinationandpersonalizedmedicine
• specializedpharmacycareprovidedinourdiseasespecificTherapeuticResourceCenterservices
• homedeliverypharmacyservices
• specialtypharmacy,includingthedistributionoffertilitypharmaceuticals,requiringspecialhandlingor
packaging
• retailnetworkpharmacyadministration
• benefitdesignconsultation
• drugutilizationreview
• drugformularymanagement
• aflexiblearrayofMedicare,MedicaidandHealthInsuranceMarketplace(“PublicExchange”)offeringsto
supportclients’benefits
• administrationofagrouppurchasingorganization
• consumerhealthanddruginformation
OurOtherBusinessOperationssegmentprimarilyconsistsofthefollowingproductsandservices:
• distributionofspecialtypharmaceuticalsandmedicalsuppliestoproviders,clinicsandhospitals
• consultingservicesforpharmaceuticalmanufacturerstocollect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andhomedeliveryofprescriptiondrugsandspecialtypharmacyservices.Revenuesfromthedeliveryof
prescriptiondrugstoourmembersrepresented98.4%ofrevenuesin2014,98.8%in2013and99.0%in2012.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undernon-exclusivecontractswithus,andthroughhomedeliveryfulfillmentpharmacies,specialtydrug
pharmaciesandfertilitypharmaciesweoperate.Morethan69,000retailpharmacies,whichrepresentover95%ofallUnited
Statesretailpharmacies,participatedinoneormoreofournetworksasofDecember31,2014.ThetoptenUnitedStatesretail
pharmacychainsrepresentapproximately60%ofthetotalnumberofstoresinourlargestnetwork.
ExpressScripts,Inc.(“ESI”)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.OnApril2,2012,ESIconsummateda
merger(the“Merger”)withMedcoHealthSolutions,Inc.(“Medco”)andbothESIandMedcobecamewholly-owned
subsidiariesofAristotleHolding,Inc.AristotleHolding,Inc.wasrenamedExpressScriptsHoldingCompany(the“Company”
or“ExpressScripts”)concurrentlywiththeconsummationoftheMerger.“We,”“our”or“us”referstoExpressScriptsHolding
Companyanditssubsidiaries.Theconsolidatedfinancialstatements(andotherdata,suchasclaimsvolume)reflecttheresults
ofoperationsandfinancialpositionofESIforallperiodspriortoApril1,2012.Referencestoamountsforperiodsafterthe
closingoftheMergeronApril2,2012relatetoExpressScripts.
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.
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