Health Renaissance in the Pharmacy

wellness, and consumer-focusedRenaissance

“If this moment in time cannotbe called a in health,

retailing, then no other time in ourhistory will ever bear that name.”

Steve AndersonPresidentNACDS

A Mission to Redefine Pharmacy in the U.S.

Our Purpose:Champion everyone’s right to be happy & healthy.

To be America’s most loved pharmacy-led health, well-being, and beauty enterprise.

Redefining the Pharmacy, Health and Wellness Experience

Accessible pharmacists

Practicing at the height of their licensure

Health Corners

Dedicated to health services and education

Private/ semi-private consultation rooms

A private area to chat with your pharmacist

Expanded services at HealthCare Clinics

Personalized, quality healthcare made easy

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Changing the landscape with:

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The Face of the Pharmacy Renaissance

Prompt:

Please tell me how you would rate the honesty and ethical standards of people in these different fields -- very high, high, average, low, or very low?

Pharmacists ranked 2nd for 4th straight year

Gallup’s annual Honesty/Ethics in Professions Poll

Reference: Gallup

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Pharmacists’ Expanded Role in Healthcare Delivery

Pharmacists are highly accessible

Pharmacists are working to improve the overall health of patients

Pharmacists are providing new innovative services

Pharmacists are trusted healthcare professionals

A positive pharmacist-patient relationship can help improve patient outcomes and lower healthcare costs

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Growing Field in the Midst of Shortages

2022 Pharmacist Projected Growth:

• 325,000 employment, increase of 14%

Pharmacist employment grew by 20,000 between 2010-2013 to 287,420

• Over 60% are employed at retail establishments (health and personal care stores, grocery stores, general merchandise stores and department stores)

Reference: Bureau of Labor Statistics

Growing Field in the Midst of Shortages (cont.)

2025 Physician Projected Shortages:

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70%

• 130,600 - All Physicians • 65,800 - Primary Care Physicians (PCPs)

of U.S. population is without/not using a primary care physician

Reference: 1. ThinkProgress 2013, 2. Health Resources and Services Administration’s Information Warehouse

3. The impact of health care reform on the future supply and demand for physicians updated projections through 2025. AAMC Web site.

Currently

• There are regions where the ratio of primary care physicians to people is 1:3,500 as of Jan. 1

Rapidly growing demand for healthcare services• Greater focus on Value for the Healthcare Dollar• Consumers demand quality, cost-effective health

and daily living options in simple, yet customized, ways

Aging of America• 10,000 Americans turning 65 daily and spending

twice as much on healthcare

Healthcare reform projected to add 30 million insured Americans

• Traditional roles in healthcare delivery are evolving

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Operating in a Dynamic Industry

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Expansion to Chronic Care Delivery

Half of the U.S. adult population (117MM) has at least one chronic disease

• 70% of Americans take at least one prescription drug

• 50% of Americans take at least two prescription drugs

• 20% of Americans take five or more prescription drugs at the same time

Rx Usage:

Reference: 1. CDC

2. HighBeam Business 2013

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Rise of the Retail Clinic

Projected number of retail-based clinics to reach 3,000 by 2016

30MM visits to retail clinics to date

15-20 minute visit with no appointment needed

Average cost of $40-$75• Physician visit or urgent care: $120

• Emergency Room: $500

Reference: Growing Retail Clinic Industry Employs, Empowers Nurse Practitioners. RWJF: February 20, 2015

Healthcare Clinics fill a significant need in Healthcare Delivery

Given primary care shortages, uniquely positioned to:

• Provide complementary primary care services

• Increase patients’ access to healthcare services

Reference: Clark B, Davis J, Hoyem R. The changing scope of retail healthcare clinic visits. Poster presented at: National Nurse Practitioner Symposium: July 10-13, 2014; Keystone, CO

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Preventative

8.9%

Acute

61.7%

Immunization

21.7%

Screening

6.5%

Chronic

9.0%

Types of Healthcare Clinic visits in 2013

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Not “Immune” to Vaccines

• Two-thirds of all pharmacists are trained to administer vaccines

M̶All 27,000 Walgreens Pharmacists certified Immunizers

• Approximately 1/3 are administered when a primary care physician would be closed

• 18.5 million flu shots were administered in retail pharmacies in 2013

Reference: 1. Rotholz, Mitchel C. The Role of Community Pharmacies/Pharmacists in Vaccine Delivery in the United States. American Pharmacist Association. June 2013.

2. Johnsen, Michael. Survey: 1-in-5 Americans got their flu shots at a retail pharmacy. Drug Store News. 2013.

3. Cannon, A., Taitel, T., Fensterheim, L., Huang, Z., Lou, Y., Goad, J. Vaccinations Administered During Off-Clinic Hours at a National Community Pharmacy: Implications for Increasing Patient Access and Convenience. National Immunization Conference. March 2012.

Solutions at the Shelf™Flu Vaccine Case Study

Flu Vaccine - Program Overview

16-week Solutions at the Shelf™ program

1,794 shelf units placed across various pharmacies in 5 DMAs:

1. Atlanta2. Boston3. Los Angeles4. New York5. Philadelphia

Units installed in the Cough/Cold section

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Program Results

• Increased vaccines of the brand by +19.2% across the 16-week Test Period (compared to the 12-week Base Period)

• Drove the entire Flu Vaccine category up by +3.2% in stores with the Rx EDGE program

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16-week Promotion Period0.0%

10.0%

20.0%

30.0%

40.0%

3.2%

19.2%

Flu Category QuadsBrand

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The Pharmacy’s Place in a Marketing Campaign

The Mindset Moment™

Healthcare is top of mind -

A state of mind when consumers’ attention is on their health or healthcare, and they are receptive to information and motivated to take action

Jimmy still hasn’tgotten rid of his cough, I

wonder if he has allergies?I need some advice.

It seems like I'm alwaysbuying heartburn medicine...

could it be somethingmore serious?

Maybe my chronicjoint pain is due to RA, itdoes run in my family.

Because of my diabetes,my doctor says I should keepmy feet healthy. I'll check theFoot Care section for ideas.

A Busy and Active Location

• Over 275 million people visit pharmacies each week

Reference: 1. Public Health Reports 2013

2. Pharmacy Pulse Satisfaction Survey 2013

• Almost 90% of Consumers are “very satisfied” with their pharmacy

• 94% of Americans plan to continue filling their prescriptions at their primary pharmacy

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• 8,000+ of the best corners in America

• 63% of Americans live within 3 miles

• 75% of African Americans

• 78% of Latinos

• > 6 Million retail customers per day

• 800+ Million annual prescriptions filled

• Largest retail vaccination provider

• 70,000 trusted healthcare provider

• 27,000 Certified Pharmacists

• 37,000 Certified Technicians

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A Wide Reach with Walgreens

Retail

Healthcare Clinics

Home Infusion/RT

Healthcare Worksites

Health Systems Rx

Mail

Online

Nationwide Reach

Convenient, Affordable Health & Wellness Solutions for Everyone

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Targeting in Pharmacy

Pharmacy works much like traditional media

Instead of channels (TV), publications (Print), stations (Radio) or sites (Online) it’s RETAILERS and AISLES

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Marketing Engagement Tactics

Shelf Dispensers

Located in aisles or on pharmacy counters

Can include: Product information, disease education, doctor discussion guides, savings offers, etc.

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Marketing Engagement Tactics (cont.)

Specialty Health Publications

Can include: how to take the product, product details, side effects, adherence program information

Attachment with Prescriptions

Focused on specific disease state or general healthcare topics

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Marketing Engagement Tactics (cont.)

Pharmacist Interactions

Delivers brand messages, trial offers, promotional items, additional information

Digital Screens, Blood Pressure Machines, Brochure Racks

Patient counseling, face-to-face communications, medication reviews, clinical services, outbound calls, etc.

Today, Customers Are Driving a New Evolution

Empowered

Personalization

Competitive

Focus on value and service