1000736--2/27/2007--CAREMARK_RX_INC

related topics
{regulation, government, change}
{cost, operation, labor}
{product, liability, claim}
{financial, litigation, operation}
{operation, international, foreign}
{product, market, service}
{customer, product, revenue}
{acquisition, growth, future}
{regulation, change, law}
Risks Related to Our Business The PBM industry is extremely competitive and competition could impair our ability to maintain existing customers and attract new customers, which could harm our business and financial results. If we lose relationships with one or more key pharmaceutical manufacturers or if the payments made by pharmaceutical manufacturers decline, our business and financial results could be adversely affected. Changes in industry pricing benchmarks could adversely affect our financial performance. We may be subject to liability claims for damages and other expenses that are not covered by insurance. Existing and new government legislative and regulatory action could adversely affect our business and financial results. Uncertainty regarding the impact of Medicare Part D may adversely affect our business and financial results. Efforts to reduce health care costs and alter health care financing practices could adversely affect our business. We are the subject of various legal proceedings. Prescription volumes may decline, and our net revenues and profitability may be negatively impacted, when products are withdrawn from the market or when increased safety risk profiles of specific drugs result in utilization decreases. Risk Factors Related to the Proposed Merger with CVS Our business could be adversely impacted by uncertainty related to the proposed Merger with CVS. Failure to complete the Merger could negatively impact our stock price and our future business and financial results. Even if the proposed Merger is completed, the combined company will be subject to certain risks associated with the Merger. Our business could be adversely impacted by uncertainty related to, and costs associated with, the exchange offer commenced by Express Scripts, Inc.

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