WOONSOCKET, R.I., and ATLANTA, January 10, 2000 -- CVS/pharmacy (NYSE: CVS), America's #1 drugstore chain, and Healtheon/WebMD (NASDAQ: HLTH), the first end-to-end Internet healthcare company connecting physicians and consumers to the entire healthcare industry, today announced a long term alliance that creates a comprehensive e-pharmacy for healthcare information, prescription and over-the-counter medications, vitamins, herbal products and beauty items. Under terms of the agreement, prescriptions and other transactions can now be facilitated completely electronically - from the doctor's office to CVS Pharmacies to the patient and from CVS' benefit managers to third-party payors and pharmacy benefit managers (PBMs). During the next six months, approximately 50 million electronic pharmacy transactions will be moved to the Healtheon/WebMD network. These transactions connect and automate CVS Pharmacies to payors, PBMs and other healthcare institutions. The partnership will provide both companies with additional revenue stream opportunities in e-commerce on both company's sites, and advertising/sponsorships. Additionally, Healtheon/WebMD will receive revenue from the connectivity transaction fees and click through impressions.
CVS.com will become the exclusive e-pharmacy for Healtheon/WebMD and in the health channels of Healtheon/WebMD's strategic online health partners Excite@Home, Lycos, and The Microsoft Network. As part of the agreement, CVS will receive more than one billion advertising impressions through its presence on WebMD and its partner's health channels. Additionally, Healtheon/WebMD will be the exclusive e-health provider of distribution, content, community and connectivity for CVS and its affiliates. The CVS.com Web site and CVS' Procare specialty pharmacy will allow consumers to gain extensive, credible information on prescriptions and related products through Healtheon/WebMD's original health content from its staff of over 100 medical writers.
"Consumers will now have a single, comprehensive destination on the Web for their healthcare and pharmacy needs," said Tom Ryan, Chairman and CEO of CVS/pharmacy. "This partnership represents another step in CVS' strategy to achieve leadership in the online pharmacy sector and will enhance the service we provide physicians and our customers on CVS.com and in our 4,100 stores."
CVS will provide pharmacy product fulfillment and offline opportunities within CVS' 4,100 retail stores serving 55 million prescription customers, which will exhibit WebMD-branded window banners and other in-store signage. The WebMD logo will appear within CVS circulars, reaching tens of millions of offline customers; and on approximately 1 billion shopping bags annually. In addition, CVS and Healtheon/WebMD will work to allow consumers the option for in-store pick-up and delivery.
Together CVS and Healtheon/WebMD will develop new products and technologies, such as a standard, end-to-end solution for generating, transmitting and filling prescriptions electronically. The companies will also develop educational information and tools to inform customers about choices for their pharmaceutical and alternative healthcare needs. The two companies will also focus on providing consumers with personalized health information via Healtheon/WebMD's "myhealthrecord" service.
"Healtheon/WebMD and CVS are working to empower consumers to take an active and involved role in managing their health," said Jeff Arnold, CEO of Healtheon/WebMD. "By working with CVS, which last year dispensed over 280 million prescriptions making it the largest retail provider of pharmaceuticals in America, with 55 million prescription customers and a rapidly growing number of active online customers, we can provide all of our customers -- including physicians and consumers -- with the most comprehensive e-pharmacy services, information and products available today."
"We are getting a superb partner in WebMD, one of the most visited healthcare information sites and certainly the most reliable and credible healthcare content provider online," said Tom Pigott, president and CEO of CVS.com. "By joining quality and authoritative health information with our full-service CVS 'clicks and mortar' pharmacy, we are providing consumers with a unique and compelling healthcare offering."
"The partnership we announced today with CVS is a significant step in addressing the fragmentation creating inefficiencies in healthcare today," said Mike Long, Chairman and Chief Operating Officer of Healtheon/WebMD. "Together, we will build on our previously announced partnerships to provide a secure, reliable electronic prescription system for physicians and consumers, completing the paperless pharmacy transaction process."
The CVS.com site will be co-branded and a co-branded version of WebMD.com will be created for CVS. A prominent link to CVS.com will appear on the WebMD home page and on the navigation bar of each WebMD page. Links to CVS.com will also appear on the health channel pages on Excite@Home, Lycos, and the Microsoft Network. Together the two companies will jointly leverage each other's on- and off-line advertising to promote the benefits of the partnership.
About CVS Corporation
CVS/pharmacy is the nation's largest retail provider of prescriptions. The Company is the #1 drugstore chain in the U.S. with approximately 4,100 stores in the Northeast, Mid-Atlantic, Southeast and Midwest regions of the country. General information about CVS, including corporate background and press releases, is available at CVS' web site at http://www.cvs.com.
CVS.com is the nation's first complete Internet pharmacy. Launched in January 1999 as soma.com, CVS.com provides 24-hour-a-day access to registered pharmacists via the Internet or toll-free telephone number. CVS.com also offers standard or next-day delivery of quality prescriptions, over-the-counter medications, and health and beauty products. CVS.com is an online destination for health-related purchases and information on health conditions and issues authored by leading medical authorities. CVS.com provides customers the best-of-both-worlds convenience of online and offline pharmacy shopping. CVS.com accepts thousands of third-party plans and offers thousands of over-the-counter items at highly competitive prices, online or telephone ordering, in-store pick-up or home delivery of prescriptions, and direct toll-free access to CVS.com pharmacists at (888) 607-4CVS. A CVS.com online media kit is available at http://www.businesswire.com/cnn/cvs.shtml.
Healtheon/WebMD is the first end-to-end Internet healthcare company connecting physicians and consumers to the entire healthcare industry. Healtheon/WebMD is using the Internet to facilitate a new system for the delivery of healthcare, resulting in a single, secure environment for all communications and transactions that will enable a more efficient and cost effective healthcare system. With corporate headquarters in Atlanta and technology headquarters in Silicon Valley, the company was formed in November 1999 as a result of the merger of Healtheon Corporation, WebMD, Inc., MEDE America and Medcast. For more information, visit http://www.webmd.com.
This press release contains certain forward-looking statements that are subject to risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's Securities and Exchange Commission filings.
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