CVS Caremark Corporation at Thomas Weisel Partners Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Steve Halper - Thomas Weisel - Analyst : Thanks, Tom. Just, while we're on the subject of the Longs acquisition, just kind of going to -- why now, okay? Why? You are in 18 months into Caremark and rolling out the strategy. Why does Longs make sense now?

Question: Steve Halper - Thomas Weisel - Analyst : So your experience with Sav-On/Osco kind of prepared you for this and makes this transaction much easier to digest and assimilate?

Question: Steve Halper - Thomas Weisel - Analyst : What do you do with the captive PBM within Longs?

Question: Steve Halper - Thomas Weisel - Analyst : Questions from the audience? Unidentified Audience Member (Inaudible question - microphone inaccessible)

Question: Steve Halper - Thomas Weisel - Analyst : The question is, what happens to Med D under a potential Obama administration?

Question: Steve Halper - Thomas Weisel - Analyst : I would add that the program for the government is less expensive than they originally projected. So is there a real issue about something that has worked and under plan?

Question: Steve Halper - Thomas Weisel - Analyst : Other questions? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. SEPTEMBER 04, 2008 / 12:35PM, CVS.N - CVS Caremark Corporation at Thomas Weisel Partners Healthcare Conference Unidentified Audience Member (Inaudible question - microphone inaccessible)

Question: Steve Halper - Thomas Weisel - Analyst : Tom, you mentioned some of these pilots and benefits from the PBM. Can you get into some of the details about what those pilots are?

Question: Steve Halper - Thomas Weisel - Analyst : In the back? Unidentified Audience Member (Inaudible question - microphone inaccessible)

Question: Steve Halper - Thomas Weisel - Analyst : But it is clear that those smaller guys are losing share. I mean --

Question: Steve Halper - Thomas Weisel - Analyst : Yes.

Question: Steve Halper - Thomas Weisel - Analyst : So, with all this focus on going to -- go ahead. Unidentified Audience Member (Inaudible question - microphone inaccessible)

Question: Steve Halper - Thomas Weisel - Analyst : Yes, the question is, when is Longs going to close? And Dave, if you could spend a couple minutes just talking about the financial aspects of that transaction.

Question: Steve Halper - Thomas Weisel - Analyst : But that is with taking the integration costs included in the P&L?

Question: Steve Halper - Thomas Weisel - Analyst : Oh, yes. Unidentified Audience Member (Inaudible question - microphone inaccessible)

Question: Steve Halper - Thomas Weisel - Analyst : Yes, the question is -- are you specific to Longs and MinuteClinic? Unidentified Audience Member (Inaudible question - microphone inaccessible)

Question: Steve Halper - Thomas Weisel - Analyst : Yes, the question is the Longs can go to what penetration rate?

Question: Steve Halper - Thomas Weisel - Analyst : Other questions? Tom, you have spent a lot of time talking about getting a bigger share of the healthcare spend and driving more of the members into the stores. Have you had any pushback within the Caremark pharmacy network providers on the fact that it seems like you are trying to take share out of the retail pharmacies and put them into the CVS stores? So the question is, has there been any concern from the other network pharmacy providers And the Caremark network?

Question: Steve Halper - Thomas Weisel - Analyst : Other questions? In the back. Unidentified Audience Member (Inaudible question - microphone inaccessible)

Question: Steve Halper - Thomas Weisel - Analyst : Great. I think we are going to wrap it up there. Gentlemen, thanks for your time.