Express Scripts (ESRX) Q1 2016 Earnings Call

posted in: Earnings Call, Notes | 0

Express Scripts (ESRX) CEO George Paz discussed their now very public lawsuit and disagreement with healthcare insurance provider Anthem

“A week ago, we filed a response to Anthem’s lawsuit. As I have said before I strongly prefer that we had never reach this point. However, we want to make clear that we are confident that we have negotiated in good faith; are fulfilling our contractual obligations; are providing excellent service to both Anthem and its members.  While it is unfortunate we are in this situation, we believe our legal case is strong. We value Anthem as a client and we very much would like to continue working with them for the long-term. We believe we are Anthem’s best PBM option, delivering great care, keeping drug costs in check and helping to grow their business. We are currently collaborating with them to implement solutions and we are proud of the results we are helping Anthem to achieve.”

Express Scripts (ESRX) President Tim Wentworth said the company serves about 25% of the US population 

“When you invest in Express Scripts, you’re investing in the healthcare of 85 million people we service. We have been successful because we focus on doing one thing extremely well, caring for our patients. Our business model alignment achieves better patient health outcomes and helps clients control healthcare costs.  Our mission is to keep our clients ahead of constantly evolving marketplace trends. We accomplish this by continuously developing new, innovative solutions for our clients. This is as critical today as it was in 1998 when I joined Express Scripts. In 18 years we’ve had dozens of earnings calls, hundreds of investor conferences and thousands of meetings with you. I have always had one clear theme, an independent PBM, fully aligned with clients, can dramatically improve health outcomes. You can measure our success in many ways, but the most important measure is that we have helped millions of people live better lives.”

Using big data to catch fraud and improve efficacy 

“And so we use great amounts of that data to not only in our own book run fraud, waste and abuse, but increasingly for our health plan clients to help power their programs, power their provider networks, power their payment mechanisms by virtue of being able to have a very complete look at prescribing patterns, at patient outcomes and so forth.”

Touted their iPhone app store rating

“in our digital app which if you follow it has evolved several iterations in the last year, and is now a four plus star app on the App Store, it was two when we started.”