2006 drug trend julayna meyer, r.ph, mba vice president trend management

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2006 Drug Trend

Julayna Meyer, R.Ph, MBAVice President Trend Management

2 2007 Express Scripts, Inc. All Rights Reserved.

2006 Drug Trend

I. Overall trend and spend

II. Future Drug Trend Projections

III. Key Therapy Classes

IV. The Results of Active Management

V. Ongoing opportunities to maximize the benefit

3 2007 Express Scripts, Inc. All Rights Reserved.

2006 Top DTC Advertised Classes

$100 Million

$200 Million

$300 Million

$400 Million

$500 Million

Source: JP Morgan March 19, 2007 Prescription Pad

$179Erectile Dysfunctio

n

$498Hypnotics

$446Cholesterol

$357Asthma

$221Osteoporosis

Hypnotics trend: 36.9%Hypnotics trend: 36.9%

4 2007 Express Scripts, Inc. All Rights Reserved.

What Do We Mean By “Drug Trend”?

• We report total ingredient cost year over year– Plan design decisions determine cost-sharing

• We report Express Scripts commercial book of business– Plan specific results available through your

Account Management team

• We track specialty separately

More detailed information can be found in our Drug Trend Report

5 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price

Units per Rx

Brand/Generic Mix

Therapeutic Mix

= Cost per Rx

X Utilization

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

Price: The difference in average price per unit of common drugs compared to previous year. Typical drivers include market dynamics and competition.

Price: The difference in average price per unit of common drugs compared to previous year. Typical drivers include market dynamics and competition.

6 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx

Brand/Generic Mix

Therapeutic Mix

= Cost per Rx

X Utilization

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

7 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx

Brand/Generic Mix

Therapeutic Mix

= Cost per Rx

X Utilization

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

8 2007 Express Scripts, Inc. All Rights Reserved.

Brand Drug Prices UpGeneric Drug Prices Down

-8%

-4%

0%

4%

8%

Brand Prices Brand Prices Up 6.9%Up 6.9%

Brand Price Leaders:Brand Price Leaders:• Hypnotics up 13.8%Hypnotics up 13.8%• Stimulants/obesity up 10.5%Stimulants/obesity up 10.5%

9 2007 Express Scripts, Inc. All Rights Reserved.

Brand Drug Prices UpGeneric Drug Prices Down

-8%

-4%

0%

4%

8%

Brand Prices Brand Prices Up 6.9%Up 6.9%

10 2007 Express Scripts, Inc. All Rights Reserved.

Brand Drug Prices UpGeneric Drug Prices Down

-8%

-4%

0%

4%

8%

Brand Prices Brand Prices Up 6.9%Up 6.9%

Generic Prices Generic Prices Down 5.7%Down 5.7%

11 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix

Therapeutic Mix

= Cost per Rx

X Utilization

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

12 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix

Therapeutic Mix

= Cost per Rx

X Utilization

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

Brand/Generic Mix: Reflects the cost impact of increased generic use. Typical drivers: new generics and maturation of the therapy class

Brand/Generic Mix: Reflects the cost impact of increased generic use. Typical drivers: new generics and maturation of the therapy class

13 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix

= Cost per Rx

X Utilization

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

14 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix

= Cost per Rx

X Utilization

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

15 2007 Express Scripts, Inc. All Rights Reserved.

Top Brand/Generic Mix Changes

Rank Therapy Class

Key Generic Introduction

Therapy Class

Impact1 Antihistamines Allegra® (2005) -11.8%

2 NSAIDs Mobic® (2006) -10.7%

3 Decongestants Flonase® (2006) -10.5%

4 Narcotic Analgesics

OxyContin® (2005)Duragesic® (2005)Actiq® (2006)

-9.1%

5 Misc. Hematologics Plavix® (2006) -8.3%

6 AntihyperlipidemicsPravachol® (2006)Zocor® (2006)

-5.6%

7 Antidepressants Zoloft® (2006) -2.5%Ranked by Percent Change

16 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix

= Cost per Rx

X Utilization

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

Therapeutic Mix: Changes in the cost per Rx due to use of more or less expensive drugs and drug strengths. Typical drivers include new products replacing old products.

Therapeutic Mix: Changes in the cost per Rx due to use of more or less expensive drugs and drug strengths. Typical drivers include new products replacing old products.

17 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix 5.3% 2.6% 3.7% 0.8% 1.7%

= Cost per Rx

X Utilization

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

18 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix 5.3% 2.6% 3.7% 0.8% 1.7%

= Cost per Rx

X Utilization

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

19 2007 Express Scripts, Inc. All Rights Reserved.

Top Therapeutic Mix Changes

-6% -4% -2% 0% 2% 4% 6% 8%

AnticonvulsantsAnticonvulsants• LyricaLyrica®® 6.9%6.9%

AntiviralsAntivirals• AtriplaAtripla®® 4.3%4.3%

Beta BlockersBeta Blockers• Coreg CR Coreg CR TMTM, Toprol XL, Toprol XL®® 3.3%3.3%

DermatologicsDermatologics•ElidelElidel®®-2.4%-2.4% •ProtopicProtopic®®

NSAIDsNSAIDs•COX-IIsCOX-IIs

-4.6%-4.6%

Ranked by Percent Change

20 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix 5.3% 2.6% 3.7% 0.8% 1.7%

= Cost per Rx 10.5% 6.8% 7.2% 3.3% 3.5%

X Utilization

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

21 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix 5.3% 2.6% 3.7% 0.8% 1.7%

= Cost per Rx 10.5% 6.8% 7.2% 3.3% 3.5%

X Utilization 6.3% 6.8% 2.9% 4.0% 2.2%

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

22 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix 5.3% 2.6% 3.7% 0.8% 1.7%

= Cost per Rx 10.5% 6.8% 7.2% 3.3% 3.5%

X Utilization 6.3% 6.8% 2.9% 4.0% 2.2%

= Common Drugs

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

23 2007 Express Scripts, Inc. All Rights Reserved.

Utilization

Prevalence

• Proportion of members utilizing drugs

• Impacted by diagnosis and therapy plan

2006 Prevalence Trend: 1%

Intensity

• Number of Rxs filled among utilizers

• Impacted by length of therapy

2006 Intensity Trend: 1.2%

24 2007 Express Scripts, Inc. All Rights Reserved.

Lowest Utilization Increase in 5 Years

-5%

0%

5%

10%

15%

20%

Antivirals Macrolides Quinolones Hypnotics Depression

2005 2006

% C

han

ge in

U

tiliza

tion

25 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix 5.3% 2.6% 3.7% 0.8% 1.7%

= Cost per Rx 10.5% 6.8% 7.2% 3.3% 3.5%

X Utilization 6.3% 6.8% 2.9% 4.0% 2.2%

= Common Drugs 17.5% 14.0% 10.4% 7.5% 5.8%

+ New Drugs

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

26 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix 5.3% 2.6% 3.7% 0.8% 1.7%

= Cost per Rx 10.5% 6.8% 7.2% 3.3% 3.5%

X Utilization 6.3% 6.8% 2.9% 4.0% 2.2%

= Common Drugs 17.5% 14.0% 10.4% 7.5% 5.8%

+ New Drugs 1.0% 0.5% 0.3% 0.4% 0.2%

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

27 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix 5.3% 2.6% 3.7% 0.8% 1.7%

= Cost per Rx 10.5% 6.8% 7.2% 3.3% 3.5%

X Utilization 6.3% 6.8% 2.9% 4.0% 2.2%

= Common Drugs 17.5% 14.0% 10.4% 7.5% 5.8%

+ New Drugs 1.0% 0.5% 0.3% 0.4% 0.2%

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

28 2007 Express Scripts, Inc. All Rights Reserved.

~Three-fold Drop in New DrugsCompared to 1996

Nature Reviews Drug Discovery 6, 99-101 (February 2007)

0

10

20

30

40

50

60

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

New Molecular Entities

29 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix 5.3% 2.6% 3.7% 0.8% 1.7%

= Cost per Rx 10.5% 6.8% 7.2% 3.3% 3.5%

X Utilization 6.3% 6.8% 2.9% 4.0% 2.2%

= Common Drugs 17.5% 14.0% 10.4% 7.5% 5.8%

+ New Drugs 1.0% 0.5% 0.3% 0.4% 0.2%

Overall Rx Trend

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

30 2007 Express Scripts, Inc. All Rights Reserved.

Component  2001:02

2002:03

2003:04

2004:05

2005:06

Price 7.5% 6.6% 6.0% 5.3% 4.3%

Units per Rx -0.1% 0.3% 0.2% 0.1% 0.4%

Brand/Generic Mix -2.3% -2.6% -2.6% -2.7% -2.9%

Therapeutic Mix 5.3% 2.6% 3.7% 0.8% 1.7%

= Cost per Rx 10.5% 6.8% 7.2% 3.3% 3.5%

X Utilization 6.3% 6.8% 2.9% 4.0% 2.2%

= Common Drugs 17.5% 14.0% 10.4% 7.5% 5.8%

+ New Drugs 1.0% 0.5% 0.3% 0.4% 0.2%

Overall Rx Trend 18.5% 14.5% 10.6% 7.9% 5.9%

Components of Rx Cost Trend*

* Excluding Specialty starting in 2003

?

31 2007 Express Scripts, Inc. All Rights Reserved.

12.9%

16.1% 16.8%

17.4%16.2%

16.7%

18.5%

14.5%

10.6% 7.9%

5.9%

0%

5%

10%

15%

20%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Lowest Drug Trend In a Decade

Express Scripts Internal Data, 2006

Note: Specialty tracked separately as of 2003

Dru

g T

rend

32 2007 Express Scripts, Inc. All Rights Reserved.

12.9%

16.1% 16.8%

17.4%16.2%

16.7%

18.5%

14.5%

10.6% 7.9%

5.9%

0%

5%

10%

15%

20%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Lowest Drug Trend In a Decade

Express Scripts Internal Data, 2006

Note: Specialty tracked separately as of 2003

80%

60%

40%

20%

0%

Generic F

ill RateD

rug

Tre

nd

33 2007 Express Scripts, Inc. All Rights Reserved.

Forecasted Single Digit Trends Through 2010

Projected non-specialty trends for ESI commercial plan sponsors. 2005-6 actual, 2007-10 estimated

0%

2%

4%

6%

8%

10%

2005 2006 2007 2008 2009 2010Rxs Cost

7.9% 5.9% 7.5% 8.5% 9.1% 7.5%

34 2007 Express Scripts, Inc. All Rights Reserved.

Brand Drugs Going Generic Soon

More than $50 billion within the next five years

An

nua

l Sa

les

$ B

illio

n

2007 2008 2009 2010 20110

3

6

9

12

15$11.2$11.2 $10.2$10.2 $8.6$8.6 $12.8$12.8 $8.5$8.5

35 2007 Express Scripts, Inc. All Rights Reserved.

Brand Drugs Going Generic Soon

More than $50 billion within the next five years

0

3

6

9

12

15

An

nua

l Sa

les

$ B

illio

n

ZyrtecZyrtecWellbutrin XLWellbutrin XL

ImitrexImitrex

AmbienAmbien

NorvascNorvasc

OtherOther

LamictalLamictalRisperdalRisperdal

FosamaxFosamax

Effexor XREffexor XR

Advair*Advair*

OtherOther

ValtrexValtrex

TopamaxTopamax

PrevacidPrevacid

OtherOther

CozaarCozaar

LipitorLipitor

OtherOther

LevaquinLevaquin

ZyprexaZyprexa

ActosActos

ProtonixProtonix

OtherOtherToprol XLToprol XL

Adderall XRAdderall XR

2007 2008 2009 2010 2011

$11.2$11.2 $10.2$10.2 $8.6$8.6 $12.8$12.8 $8.5$8.5

36 2007 Express Scripts, Inc. All Rights Reserved.

Top Five Therapy ClassesOverall Total Ingredient Costs, 2005:2006 PMPY

$0

$20

$40

$60

$80

$100

Lipids GI Depression Diabetes Asthma

2005 2006

PM

PY

3.6%3.6% 6.7%6.7% 7.1%7.1% 15.5%15.5% 11.6%11.6%

37 2007 Express Scripts, Inc. All Rights Reserved.

0%

5%

10%

15%

20%

25%

30%

Generic Antidepressant Market Share Gaps

Jan 2001 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan 2006

citalopram actual

paroxetine actual

fluoxetine actual

Without action, our Without action, our SSRI generic use fell SSRI generic use fell short by about short by about 30%30%

Without action, our Without action, our SSRI generic use fell SSRI generic use fell short by about short by about 30%30%

fluoxetine ideal

paroxetine ideal

citalopram ideal

38 2007 Express Scripts, Inc. All Rights Reserved.

0%

5%

10%

15%

20%

25%

30%

Generic Antidepressant Market Share Gaps

Jan 2001 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan 2006

We didn’t want the same We didn’t want the same thing to happen in the thing to happen in the biggest class -- Lipidsbiggest class -- Lipids

We didn’t want the same We didn’t want the same thing to happen in the thing to happen in the biggest class -- Lipidsbiggest class -- Lipids

citalopram actual

paroxetine actual

fluoxetine actual

fluoxetine ideal

paroxetine ideal

citalopram ideal

2006A Large Opportunity for

Savings In the Statin Class

40 2007 Express Scripts, Inc. All Rights Reserved.

Statin Market Shares

Q1-2 2005 Q3-4 2005 Q1-2 2006 Q3-4 2006

70%

60%

50%

40%

30%

20%

10%

0% ZocorZocor

Zocor gained market share prior to patent expirationZocor gained market share prior to patent expiration

41 2007 Express Scripts, Inc. All Rights Reserved.

Statin Market Shares

Q1-2 2005 Q3-4 2005 Q1-2 2006 Q3-4 2006

70%

60%

50%

40%

30%

20%

10%

0% ZocorZocor

SimvastatinSimvastatin

Simvastatin continued on Zocor’s market growth curveSimvastatin continued on Zocor’s market growth curve

42 2007 Express Scripts, Inc. All Rights Reserved.

Statin Market Shares

Q1-2 2005 Q3-4 2005 Q1-2 2006 Q3-4 2006

70%

60%

50%

40%

30%

20%

10%

0% ZocorZocor

SimvastatinSimvastatin

Generic HMGsGeneric HMGs

Generic drugs now lead the statin market.Generic drugs now lead the statin market.

43 2007 Express Scripts, Inc. All Rights Reserved.

Express Scripts Outperformed The Nation

Q1-2 2005 Q3-4 2005 Q1-2 2006 Q3-4 2006

70%

60%

50%

40%

30%

20%

10%

0%

ESI Generic ESI Generic HMGsHMGs

NMS Generic NMS Generic HMGsHMGs

44 2007 Express Scripts, Inc. All Rights Reserved.

Statin Trend

Without GenericsToda

y

With GenericsToda

y

-2% -1% 0% 1% 2% 3%

45 2007 Express Scripts, Inc. All Rights Reserved.

Statin Trend

Without GenericsToda

y

With GenericsToda

y

-2% -1% 0% 1% 2% 3%

+2.0%+2.0%

46 2007 Express Scripts, Inc. All Rights Reserved.

Statin Trend

Without GenericsToda

y

With GenericsToda

y

-2% -1% 0% 1% 2% 3%

-1.1%-1.1%

+2.0%+2.0%

47 2007 Express Scripts, Inc. All Rights Reserved.

Therapy Class #1: Lipids Generic Drugs Drove Down Trend

Class Trend: 3.6%

5.5%

0.0%

3.9%

1.3%

-1.1%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

-5.6%

48 2007 Express Scripts, Inc. All Rights Reserved.

Therapy Class #1: Lipids Generic Drugs Drove Down Trend

Class Trend: 3.6%

5.5%

0.0%

3.9%

1.3%

-1.1%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

-5.6%

49 2007 Express Scripts, Inc. All Rights Reserved.

Tremendous Generic OpportunityClass Trend: 6.7%

1.8%

-1.3%

2.1%

2.8%

0.0%

0.0%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #2: Gastrointestinals

50 2007 Express Scripts, Inc. All Rights Reserved.

Tremendous Generic OpportunityClass Trend: 6.7%

1.8%

-1.3%

2.1%

2.8%

0.0%

0.0%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #2: Gastrointestinals

??

51 2007 Express Scripts, Inc. All Rights Reserved.

Step Therapy Can Drive PPI Savings

PPI GFR Ingredient PMPY

Without PPI Step With PPI Step

$44$44

$63$63

3838%%

1414%%

52 2007 Express Scripts, Inc. All Rights Reserved.

Prevalence Drove Antidepressants

Class Trend: 7.1%

1.9%

1.7%

1.3%

4.2%

0.0%

-2.5%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #3: Antidepressants

53 2007 Express Scripts, Inc. All Rights Reserved.

Prevalence Drove Antidepressants

Class Trend: 7.1%

1.9%

1.7%

1.3%

4.2%

0.0%

-2.5%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #3: Antidepressants

54 2007 Express Scripts, Inc. All Rights Reserved.

Trend Driven By Prevalence

Class Trend: 15.5%

5.2%

2.9%

0.7%

5.4%

1.4%

-1.8%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #4: Diabetes

55 2007 Express Scripts, Inc. All Rights Reserved.

Trend Driven By Prevalence

Class Trend: 15.5%

5.2%

2.9%

0.7%

5.4%

1.4%

-1.8%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #4: Diabetes

56 2007 Express Scripts, Inc. All Rights Reserved.

Price Drove AsthmaClass Trend: 11.6%

8.2%

0.8%

1.6%

0.7%

0.0%

0.0%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #5: Asthma

57 2007 Express Scripts, Inc. All Rights Reserved.

Price Drove AsthmaClass Trend: 11.6%

8.2%

0.8%

1.6%

0.7%

0.0%

0.0%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #5: Asthma

58 2007 Express Scripts, Inc. All Rights Reserved.

Hypnotics Are Growing QuicklyClass Trend: 36.9%

13.8%

3.1%

5.3%

10.6%

0.0%

-0.1%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #19: Hypnotics

59 2007 Express Scripts, Inc. All Rights Reserved.

Hypnotics Are Growing QuicklyClass Trend: 36.9%

13.8%

3.1%

5.3%

10.6%

0.0%

-0.1%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #19: Hypnotics

60 2007 Express Scripts, Inc. All Rights Reserved.

Hypnotics Are Growing QuicklyClass Trend: 36.9%

13.8%

3.1%

5.3%

10.6%

0.0%

-0.1%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #19: Hypnotics

61 2007 Express Scripts, Inc. All Rights Reserved.

Hypnotics Are Growing QuicklyClass Trend: 36.9%

13.8%

3.1%

5.3%

10.6%

0.0%

-0.1%

New Drugs

Intensity

Prevalence

Therapeutic Mix

Brand/Generic Mix

Price

Therapy Class #19: Hypnotics

62 2007 Express Scripts, Inc. All Rights Reserved.

63 2007 Express Scripts, Inc. All Rights Reserved.

64 2007 Express Scripts, Inc. All Rights Reserved.

Hypnotics Need Your Focus

2002 2003 2004 2005 2006

80%

70%

60%

50%

40%

30%

20%

10%

0%

AmbienAmbien

Ambien Ambien CRCRLunestaLunesta

SonataSonata

RozeremRozerem

65 2007 Express Scripts, Inc. All Rights Reserved.

Adding Programs Drives Savings

0%

5%

10%

Without GT With GT

>2 new programs

1 new program

No new programs

ESI 2006 Non-Specialty ESI 2006 Non-Specialty Trend: 5.9%Trend: 5.9%

66 2007 Express Scripts, Inc. All Rights Reserved.

Adding Programs Drives Savings

10.0%9.6%

0%

5%

10%

Without GT With GT

>2 new programs

1 new program

No new programs

67 2007 Express Scripts, Inc. All Rights Reserved.

Adding Programs Drives Savings

7.2%

10.0%

5.5%

9.6%

0%

5%

10%

Without GT With GT

>2 new programs

1 new program

No new programs

68 2007 Express Scripts, Inc. All Rights Reserved.

Adding Programs Drives Savings

3.0%

7.2%

10.0%

5.5%

9.6%

1.8%

0%

5%

10%

Without GT With GT

>2 new programs

1 new program

No new programs

69 2007 Express Scripts, Inc. All Rights Reserved.

2006 Trend At An Encouraging 5.9%

• The more you manage, the lower your trend.

• Opportunities abound for managing out waste.

– PPI class represents a significant opportunity

– Don’t be asleep with Hypnotics spend

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