Caremark Rx, Inc.
Industry: Retail (Drugs)

Caremark Rx, Inc. is a leading pharmaceutical services company, providing comprehensive drug benefit services through its affiliate Caremark Inc. to over 1,200 health plan sponsors and their participants throughout the U.S. Caremark's clients include corporate health plans, managed care organizations, insurance companies, unions, government agencies and other funded benefit plans. The company operates a national retail pharmacy network with over 55,000 participating pharmacies, four state-of-the-art mail service pharmacies, the industry's only FDA-regulated repackaging plant and nineteen specialty distribution mail service pharmacies for delivery of advanced medications to individuals with chronic or genetic diseases and disorders.

Business Summary
Caremark Rx, Inc. (Caremark Rx) is a pharmaceutical services company that conducts its operations primarily through Caremark Inc. (Caremark) and CaremarkPCS (f/k/a AdvancePCS) (CaremarkPCS) subsidiaries. The Company's pharmaceutical services are referred to as pharmacy benefit management (PBM) services and involve the design and administration of programs aimed at reducing the costs and improving the safety, effectiveness and convenience of prescription drug use. The Company's customers are primarily sponsors of health benefit plans (employers, unions, government employee groups, insurance companies and managed care organizations) and individuals located throughout the United States. During the year ended December 31, 2004, Caremark Rx managed over 484 million prescriptions for individuals from over 2,000 organizations. The Company acquired AdvancePCS on March 24, 2004.

Financial Summary
Caremark Rx, Inc. provides pharmacy benefit management services and therapeutic pharmaceutical services. For the 6 months ended 6/30/05, net revenues increased 61% to $16.61B. Net income increased 84% to $410.3M. Revenues reflect new customer contracts and the acquisition of AdvancePCS. Earnings also benefitted from decreased selling, general and administrative expenses as a percentage of revenues.