The next few years are shaping up to be among the best of times for the retail pharmacy industry. According to IMS Health, pharmacy sales are expected to continue growing at a 5 to 8 percent compound annual rate. The increased use of pharmaceuticals as the first line of defense in health care, the introduction of new and better drug therapies, and an aging population requiring more prescription drugs are all important drivers. As the No. 1 drugstore chain in America, CVS certainly stands to benefit.

Blockbuster drugs like Zocor®, Zoloft®, and Pravachol® are among the approximately $15 billion in branded drug sales expected to lose patent protection in 2006 alone. That should only increase the already rising use of lower-cost, generic equivalents. By making it easier for 42 million eligible seniors to afford the medicines they need, the launch of the Medicare Part D prescription drug benefit also means that prescription utilization is likely to grow. More than 20 million people have already signed up, including an estimated 3.5 million people who did not previously have prescription drug coverage. CVS is playing a key role at more than 5,400 CVS/pharmacy stores and through our PharmaCare pharmacy
benefits manager.