SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: March 29, 1999
Express Scripts, Inc.
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(Exact Name of Registrant as specified in its Charter)
Delaware 0-20199 43-1420563
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(State or other (Commission File No.) (I.R.S. Employer
jurisdiction of Identification
corporation) No.)
14000 Riverport Drive, Maryland Heights, Missouri 63043
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (314) 770-1666
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(Former name or former address, if changed since last report)
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Item 5. Other Events
On March 29, 1999, Express Scripts, Inc. issued a press release, a copy of
which is attached hereto as Exhibit 99.1, and incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) The following exhibit is filed as part of this report on Form 8-K:
Exhibit 99.1 Press release, dated March 29, 1999, by Express Scripts, Inc.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
EXPRESS SCRIPTS, INC.
Date: April 15, 1999 By: /s/ Barrett A. Toan
Barrett A. Toan
President and Chief Executive Officer
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EXHIBIT INDEX
Exhibit No. Description
99.1 Press release, dated March 29, 1999, by Express Scripts, Inc.
EXHIBIT 99.1
YOURPHARMACY.COM
DRUGDIGEST.ORG
EXPRESS SCRIPTS, INC. UNVEILS PLANS FOR
ONLINE PHARMACY AND DRUG INFORMATION SITES
INTERNET SUBSIDIARY WILL SERVE
36.5 MILLION POTENTIAL CUSTOMERS
"Unlike the start-up Internet pharmacies, we have
deep experience and access to millions of existing customers."
St. Louis, Mo., March 29, 1999 --- Express Scripts, Inc. (NASDAQ: ESRX),
the nation's leading independent full-service pharmacy benefit manager (PBM),
announced today plans for a dual online effort targeted to an initial customer
base of more than 36.5 million people.
The company has formed a subsidiary to launch one site, YourPharmacy.com,
that will serve as a major online drug store and another site, DrugDigest.org,
that will focus on consumer drug information. Together, these sites will provide
consumers with reliable drug information and more convenient shopping.
Both sites are scheduled to launch during the second quarter of 1999.
"Unlike the start-up Internet pharmacies, we have deep experience and
access to millions of existing customers," says Gregg Rotenberg, president of
the newly formed subsidiary of Express Scripts that will manage the web sites.
"We intend to leverage our relationship with Express Scripts and its
relationships with many of the nation's leading employers and managed care
organizations to have a direct dialogue with our target customers."
The new online effort will also utilize Express Scripts' world-class
expertise in delivering prescription drugs to the home. "While our online
competitors are experimenting with their first mail-order prescription, we'll
use the same facilities and safety checks that were used to send out more than 8
million mail prescriptions in the past year alone," says Rotenberg.
"We believe that these on-line services will be extremely beneficial to our
PBM clients and members," explains Barrett Toan, Chief Executive Officer of
Express Scripts. "For example, we eventually expect to offer a screening service
that can not only check for adverse reactions across the prescription and
non-prescription products bought at YourPharmacy.com, but also for interactions
with prescriptions purchased by a health plan member at any pharmacy in the
Express Scripts network."
"The ability to check for interactions between non-prescription products
and prescription drugs will improve the quality of care the PBM can provide
consumers," says Dr. Craig Frances, an internist and medical text book author
and editor who serves as the Chief Medical Officer of the on-line subsidiary.
"For example, the blood thinning prescription warfarin has dangerous, documented
interactions with the prescription anti-ulcer medication cimetidine and many
non-prescription products including aspirin, ibuprofen, vitamin E and ginkgo
biloba. Alerting patients to these interactions will help to improve consumers'
health and reduce healthcare costs."
"We are excited about the sites that our new online subsidiary will be
bringing to market," says Toan. "We have established this subsidiary with its
own identity and management to strengthen its position in this very fast-moving
category."
The YourPharmacy.com site will sell prescription medicines,
over-the-counter drugs, vitamins, herbs and health and beauty aids to members at
competitive prices.
Among its many advantages, the YourPharmacy.com site will offer 90-day
prescriptions from Express Scripts' mail order facilities rather than the
standard 30-day prescription offered by traditional drug stores. Due to the
efficiency of filling a prescription once every 90 days rather than every 30
days, these longer-term prescriptions usually save money for both patients and
their employers. "According to IMS, chronic medications comprise 75 percent of
the prescription drug market. For many of these chronic medication users, the
lower cost, more convenient 90-day prescription model will be attractive," says
Rotenberg.
Express Scripts, Inc. is the first major PBM to announce its intention to
open an online pharmacy.
The DrugDigest.org site will provide fact-based information on a wide
variety of drugs, vitamins, and herbs. While there are dozens of web sites that
provide health care information, this site plans to provide the most
comprehensive review of drug information. "Our goal is to empower consumers,
enabling them to have more productive conversations with their doctors," says
Dr. Frances. "Doctors frequently have too much to do during a short patient
visit to explain all of the risks and benefits of patients' medications. The
best way for consumers to improve the quality of their care is to be
well-informed."
The informational site has also established an alliance with J.D. Power and
Associates, an international marketing information firm specializing in customer
satisfaction research and recognized in many industries as the "voice of the
customer."
"We conducted a lot of research on what patients really want to know about
their medications and the Internet sites from which they could get this
information," says Frances. "The number one issue in people's minds was the
credibility of the site. After seeing this research, we knew an association with
a firm as respected as J.D. Power and Associates would be exciting for both of
us."
According to the National Association of Chain Drug Stores, total retail
sales of prescription drugs and drug store-related products in the US exceeded
$160 billion in 1998. At historical growth rates, total retail sales of the same
products will approach $300 billion by 2003.
Express Scripts, Inc., is the nation's leading independent full-service
pharmacy benefit management (PBM) and specialty managed care company. Through
facilities in seven states and Canada, the company serves thousands of clients
throughout North America, including managed care organizations, insurance
carriers, third-party administrators, employers and union-sponsored benefit
plans. Express Scripts will serve 36.5 million PBM customers and will manage
approximately $8 billion in annual drug spending (assuming completion of Express
Scripts' pending acquisition of Diversified Pharmaceutical Services Inc. and net
of the 10.5 million UnitedHealth Group members whose contract will expire in May
2000).
Express Scripts, Inc. provides a full range of consultative PBM services,
including pharmacy network management, mail service, formulary management,
disease management and medical and drug data analysis services. The company also
provides medical information management services, which include provider
profiling and outcomes assessments, informed decision counseling services and
infusion therapy services.
Express Scripts, Inc. is headquartered in St. Louis, Missouri and has
additional major sites in Minneapolis, Minnesota; Bensalem, Pennsylvania;
Albuquerque, New Mexico; Tempe, Arizona; Troy, New York; and Farmington Hills,
Michigan. More information can be found at http://www.express-scripts.com.
This press release contains forward-looking statements, including, but not
limited to, statements related to the company's plans, objectives, expectations
(financial and otherwise) or intentions. The company's actual results may differ
significantly from those projected or suggested in any forward-looking
statements. Certain factors relating to the announced online site that might
cause such a difference to occur include, but are not limited to, the regulation
of online pharmacies, ability to contract with a number of business partners,
and other industry factors. In particular, internet commerce is a rapidly
changing environment and such changes could cause the company to alter it's
business plan for its internet operations.
Other general factors that may impact these forward-looking statements
include heightened competition; changes in pricing or discount practices of
pharmaceutical manufacturers; the ability of the company to consummate contract
negotiations with prospective clients; competition in the bidding and proposal
process; adverse results in certain litigation and regulatory matters; lower
than expected sales and revenue growth; the adoption of adverse legislation or a
change in the interpretation of existing legislation or regulations; risks
associated with the development of new products; risks associated with the "Year
2000" issue, including the ability of the company to successfully convert its
information systems and its non-information systems, and the ability of its
vendors/trading partners to successfully convert their systems to accommodate
dates beyond December 31, 1999; and other risks described from time to time in
the company's public filings with the Securities and Exchange Commission. The
company does not undertake any obligation to release publicly any revisions to
such forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
