|CVS Caremark Uniquely Integrated Business Well-Positioned to Deliver Shareholder Value|
CEO Tells Stockholders Integrated Pharmacy Services Model Enhances Access to Care While Lowering Health Care Costs and Improving Health Outcomes
Outlines Strategy and Key Initiatives That will Drive Performance Goals
WOONSOCKET, R.I., May 11, 2011 /PRNewswire via COMTEX/ --
CVS Caremark's (NYSE: CVS) uniquely integrated pharmacy care business is well-positioned to deliver shareholder value, CEO Larry Merlo told attendees today at CVS Caremark's Annual Meeting of Stockholders. "Our combined business model provides greater access, convenience and choice to consumers and is helping patients improve their health and lower their overall health care costs," Merlo said.
Speaking at the Annual Meeting of Stockholders for the first time as CVS Caremark CEO, Merlo said, "The fact is no one else can match our combination of assets -- a leading PBM, one of the largest retail pharmacy chains, a leading specialty pharmacy, a growing Medicare Part D business, and the largest and fastest-growing network of retail health clinics. CVS Caremark is using these combined assets to develop and implement innovative programs and offerings, such as Pharmacy Advisor and Maintenance Choice, which should drive long term value for shareholders."
Merlo said the company has a clear strategy for building future success. The plan includes a streamlining effort that will cut $1 billion in costs out of pharmacy benefit management (PBM) operations, continued superior performance of the retail pharmacies and expanding health care services at MinuteClinic over the next several years.
"We have a solid base that is expected to lead to steady growth in operating income and significant free cash flow over the next several years," Merlo said. "We have a great management team and a breadth of capabilities that is unmatched in our industry. We strongly believe that our strategy fits in extremely well with the goals of health reform and the priorities of payors, which bodes well for a bright future."
CVS Caremark Board member and former Lead Director Terrence Murray recognized the work done by former Chairman and CEO Thomas M. Ryan who retired effective with the end of the annual meeting. Following the meeting, the Board was expected to elect a new non-executive Chairman, David Dorman, former Chairman and CEO of AT&T and a CVS Caremark Board member since 2006. Recent additions to the Board include Anne Finucane of Bank of America and Tony White, ex-Chair and CEO of Applied Biosystems.
About CVS Caremark
CVS Caremark is the largest pharmacy health care provider in the United States with integrated offerings across the entire spectrum of pharmacy care. We are uniquely positioned to engage plan members in behaviors that improve their health and to lower overall health care costs for health plans, plan sponsors and their members. CVS Caremark is a market leader in mail order pharmacy, retail pharmacy, specialty pharmacy, and retail clinics, and is a leading provider of Medicare Part D Prescription Drug Plans. As one of the country's largest pharmacy benefits managers (PBMs), we provide access to a network of approximately 65,000 pharmacies, including more than 7,100 CVS/pharmacy® stores that provide unparalleled service and capabilities. Our clinical offerings include our signature Pharmacy Advisor(TM) program as well as innovative generic step therapy and genetic benefit management programs that promote more cost effective and healthier behaviors and improve health care outcomes. General information about CVS Caremark is available through the Company's Web site at http://info.cvscaremark.com/.
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