At Town Hall Los Angeles, a public forum that has addressed key community issues for more than two decades, Larry Merlo, President and CEO of CVS Health, highlighted his vision for bringing transformative change to health care access and delivery. Merlo discussed how the combination of CVS Health and Aetna will help reduce the complexity and cost burdens that consumers face today when managing their health care. According to Merlo, the combined company has the potential to make health care easier to use and less expensive for the consumer by strengthening access to care locally, empowering a more connected health care system and helping to prevent and manage costly conditions.
Expanding Health Care Access Locally
One in three Americans view access to quality care as the most important health priority in their community. Furthermore, research shows that when people have regular access to primary care, it makes a positive, long-term difference in their health.
Of note, 70 percent of Americans live within three miles of a CVS Pharmacy. Our geographic footprint empowers our 36,000 pharmacists, physicians’ assistants and nurse practitioners who serve on the front lines of care every day – guiding patients on their medication needs and helping them manage care in between doctor visits.
Merlo reinforced how CVS Health will continue to help fill care gaps between visits to the doctor, serving as a complement to traditional primary care. For example, about half of the people who walk into a MinuteClinic don’t have a primary care physician. Because of the company’s commitment to connecting patients to the right care at the right time, CVS Health has formed alliances with more than 70 major health systems across the country.
A More Connected, Efficient Health Care System
Patients often must carry medical records with them to the different sites where they receive care, making it difficult to get the full range of coordinated care they need. For people living with an ongoing disease, this is an area that requires improvement. Consider, for example, that a patient with diabetes will likely see an endocrinologist, a primary care physician and a pharmacist to manage their condition – all at separate sites of care.
“Better connectivity is needed across the care continuum – at the provider’s office and in the home – to ensure earlier interventions and reduce the likelihood of hospital readmissions,” said Merlo. “By fully integrating Aetna’s medical information and analytics with CVS Health’s pharmacy data and community locations, we will enable more effective and preventative treatment of the whole patient.”
Improving Health Outcomes and Lowering Costs
Last year, the United States spent $10,000 per person on health care. Yet, Americans at all socioeconomic levels are less healthy than people in other high-income countries.
More than half of all American adults live with one or more chronic diseases today, which accounts for 86 percent of health care spending.
“Through our expanded offerings, we’ll have a strengthened community presence with stores, pharmacists and retail clinic practitioners to provide consumers with preventative counseling and guidance,” said Merlo. “We’ll be there more frequently when consumers living with chronic diseases pick up their medicines – to talk with them face-to-face not just about managing their medications, but also how to better manage their health and well-being.”
Merlo emphasized that CVS Health will also be expanding the use of digital tools to help manage conditions. These tools will help patients seamlessly monitor key indicators, such as blood glucose levels, and then follow-up via text message when results look concerning or require attention.
For a copy of Merlo’s remarks at Town Hall Los Angeles, click here.
No Offer or Solicitation
This communication is for informational purposes only and not intended to and does not constitute an offer to subscribe for, buy or sell, the solicitation of an offer to subscribe for, buy or sell or an invitation to subscribe for, buy or sell any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Additional Information and Where to Find It
In connection with the proposed transaction between CVS Health Corporation ("CVS Health") and Aetna Inc. ("Aetna"), CVS Health filed a registration statement on Form S-4 with the Securities and Exchange Commission (the "SEC"), which includes a joint proxy statement of CVS Health and Aetna that also constitutes a prospectus of CVS Health. The registration statement was declared effective by the SEC on February 9, 2018, and CVS Health and Aetna commenced mailing the definitive joint proxy statement/prospectus to stockholders of CVS Health and shareholders of Aetna on or about February 12, 2018, and the special meeting of the stockholders of CVS Health and the shareholders of Aetna was held on March 13, 2018. INVESTORS AND SECURITY HOLDERS OF CVS HEALTH AND AETNA ARE URGED TO READ THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain free copies of the registration statement and the definitive joint proxy statement/prospectus and other documents filed with the SEC by CVS Health or Aetna through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by CVS Health are available free of charge within the Investors section of CVS Health's Web site at http://www.cvshealth.com/investors or by contacting CVS Health's Investor Relations Department at 800-201-0938. Copies of the documents filed with the SEC by Aetna are available free of charge on Aetna's internet website at http://www.Aetna.com or by contacting Aetna's Investor Relations Department at 860-273-0896.
Cautionary Statement Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 (the "Reform Act") provides a safe harbor for forward-looking statements made by or on behalf of CVS Health or Aetna. This communication may contain forward-looking statements within the meaning of the Reform Act. You can generally identify forward-looking statements by the use of forward-looking terminology such as "anticipate," "believe," "can," "continue," "could," "estimate," "evaluate," "expect," "explore," "forecast," "guidance," "intend," "likely," "may," "might," "outlook," "plan," "potential," "predict," "probable," "project," "seek," "should," "view," or "will," or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond CVS Health's and Aetna's control.
Statements in this communication that are forward-looking, including projections as to the closing date for the pending acquisition of Aetna (the "transaction"), the extent of, and the time necessary to obtain, the regulatory approvals required for the transaction, the anticipated benefits of the transaction, the impact of the transaction on CVS Health's and Aetna's businesses, the expected terms and scope of the expected financing for the transaction, the ownership percentages of CVS Health's common stock of CVS Health stockholders and Aetna shareholders at closing, the aggregate amount of indebtedness of CVS Health following the closing of the transaction, CVS Health's expectations regarding debt repayment and its debt to capital ratio following the closing of the transaction, CVS Health's and Aetna's respective share repurchase programs and ability and intent to declare future dividend payments, the number of prescriptions used by people served by the combined companies' pharmacy benefit business, the synergies from the transaction, and CVS Health's, Aetna's and/or the combined company's future operating results, are based on CVS Health's and Aetna's managements' estimates, assumptions and projections, and are subject to significant uncertainties and other factors, many of which are beyond their control. In particular, projected financial information for the combined businesses of CVS Health and Aetna is based on estimates, assumptions and projections and has not been prepared in conformance with the applicable accounting requirements of Regulation S-X relating to pro forma financial information, and the required pro forma adjustments have not been applied and are not reflected therein. None of this information should be considered in isolation from, or as a substitute for, the historical financial statements of CVS Health and Aetna. Important risk factors related to the transaction could cause actual future results and other future events to differ materially from those currently estimated by management, including, but not limited to: the timing to consummate the proposed transaction; the risk that a regulatory approval that may be required for the proposed transaction is delayed, is not obtained or is obtained subject to conditions that are not anticipated; the risk that a condition to the closing of the proposed transaction may not be satisfied; the outcome of litigation related to the transaction; the ability to achieve the synergies and value creation contemplated; CVS Health's ability to promptly and effectively integrate Aetna's businesses; and the diversion of and attention of management of both CVS Health and Aetna on transaction-related issues.
In addition, this communication may contain forward-looking statements regarding CVS Health's or Aetna's respective businesses, financial condition and results of operations. These forward-looking statements also involve risks, uncertainties and assumptions, some of which may not be presently known to CVS Health or Aetna or that they currently believe to be immaterial also may cause CVS Health's or Aetna's actual results to differ materially from those expressed in the forward-looking statements, adversely impact their respective businesses, CVS Health's ability to complete the transaction and/or CVS Health's ability to realize the expected benefits from the transaction. Should any risks and uncertainties develop into actual events, these developments could have a material adverse effect on the transaction and/or CVS Health or Aetna, CVS Health's ability to successfully complete the transaction and/or realize the expected benefits from the transaction. Additional information concerning these risks, uncertainties and assumptions can be found in CVS Health's and Aetna's respective filings with the SEC, including the risk factors discussed in "Item 1.A. Risk Factors" in CVS Health's and Aetna's most recent Annual Reports on Form 10-K, as updated by their Quarterly Reports on Form 10-Q and future filings with the SEC.
You are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. Neither CVS Health nor Aetna assumes any duty to update or revise forward-looking statements, whether as a result of new information, future events or otherwise, as of any future date.