According to industry sources, U.S. pharmacy sales are expected to continue growing at an annual rate of 5 to 8 percent for the foreseeable future. With more locations than any other U.S. pharmacy retailer, CVS stands to be among the chief beneficiaries of this long-term trend. An aging population, rising use of generic drugs, the Medicare Part D prescription drug benefit, and new discoveries are some of the key factors driving the greater demand for pharmaceuticals.

According to the U.S. Census Bureau, approximately 40 million people in the United States will be 65 or older by 2010 as baby boomers begin to reach that age group. That figure will jump to roughly 55 million in 2020, which should lead to significant growth in our industry. That's because this age group fills more than 25 prescriptions annually - 30 percent more than people between the ages of 55 and 64.

Furthermore, roughly $50 billion in branded drug sales will lose patent protection over the next five years. The increasing availability of low-cost generics will translate into good news for CVS and the U.S. healthcare system in general. We benefit from the higher margins generic drugs provide. Their lower cost also puts many potentially live-saving medicines within reach of people who otherwise might not have found them affordable.

Meanwhile, we're doing our part to make it as easy as possible for our customers to order and pick up their prescriptions. More than 65 percent of CVS locations offer 24-hour or extended-hours service in the pharmacy, and approximately 55 percent of our stores offer drive-thru pharmacy windows. RapidRefill makes it easy to reorder prescriptions over the telephone or through CVS.com. Most importantly, approximately 20,000 highly trained CVS pharmacists stand ready to answer questions and provide helpful advice.