Walgreens and OptionCare—A Winning Combination Walgreen Co.’s recent acquisition of Option Care, Inc.—a national home infusion and specialty pharmacy provider—is the largest in the Company’s history and dem-onstrates our commitment to delivering integrated healthcare solutions to our clients.

We look forward to offering you and your members the best of both company’s expe-rience, capabilities, and capacity. Now, with more services and support and greater ac-cess to care available across the country, our ability to provide your members with the care they require is expanding—making us your best choice for specialty pharmacy and home care services.

We now have more than 100 home care facilities in 37 states, many of which include ambulatory treatment centers. Our nursing program is enhanced with a staff of more than 600 nurses providing local support to patients on traditional infusion services as well as many infused specialty medications. What’s more, our central fulfillment capabilities for specialty medications have also expanded.

Our integration plans are well underway. During this time, our entire team is focused on delivering high-quality customer service and patient care. These have been—and always will be—our top priorities.

Walgreens Wins Award for Sensipar® Adherence Program Walgreen Co., along with the manufacturer, Amgen, received the award for Best Branded Adherence Program for the Persistency Program for Sensipar® at the

In This Issue: Limited-Distribution Medications Access Increases ..........................2

Specialty Fulfillment Services Expand ......................... 3

Walgreens Wellness Benefit™ Promotes Choice ........................ 3

New HIV/AIDS Care Center Launched.............. 4

In-Store Clinics’ Popularity Grows ........................ 4

Flu and Pneumonia Clinics Gear Up ...........................5

Rx Drug Update ......................... 6

New Rx Indications .....................7

Walgreens at Upcoming Conferences .................................7

Mark Your Calendar ...................7

Walgreens Raises Funds for JDRF ............................. 8

Promoting Plan Benefits ............ 8

continued on p.2

September/October 2007

Volume 2 Number 3

A newsletter created especially for managed care clients, delivering

a mix of news and trends in healthcare, and up-to-date information

about our products and services

Rx Matters

©2007 Walgreen Co. All rights reserved. Page 1

Strategic Patient Adherence Awards. The award was presented at the Sixth Annual Forum on Patient Compliance, Adherence and Persistency. These awards, co-sponsored by CBI Research, Inc. and Phar-maVoice, are presented to pharmaceutical organizations that have been deemed exceptional in their medication adherence initiatives. Organizations’ medication adherence programs are evaluated on criteria that include innovation, quality, patient recruitment, medication adherence and acceptance, health practitioner acceptance, health outcomes, and marketing return on investment. Sensipar is indicated for the treatment of secondary hyperparathyroidism in patients with chronic kidney disease on dialysis, and for the treatment of hypercalcemia in patients with parathyroid carcinoma.

Our Access to Limited-Distribution Medications Grows Walgreens Specialty Pharmacy has been selected to dispense the limited-distribution medications Synagis® (palibvizumab), Letaris™ (ambrisentan), and Tracleer® (bosentan). We were selected because of our expertise in managing the needs of patients with complex, chronic conditions. In addition, our therapy management programs help to ensure timely delivery of specialty medications, while monitoring patients’ tolerance and adherence to them. Also, our comprehensive services give patients the support they need to adjust to treatment, maximize insurance benefit coverage, and improve their overall quality of life.

Synagis reduces the risk of babies contracting respiratory syncytial virus (RSV) which manifests itself with cold-like symptoms. In pre-mature babies or in babies born with low birth weight, heart or lung conditions, undeveloped lungs, and/or poor immune systems, RSV can be quite serious. Each year, hundreds of thousands of infants are infected with RSV, resulting in the hospitalization of approximately 125,000. Of those, approximately 500 lose their lives. Almost 1 million babies have benefited from Synagis since its launch in 1998.

For six years, Walgreens Specialty Pharmacy has provided Synagis vaccinations to babies, and been a distributor of the medication to physician offices, pediatric clinics, and other healthcare settings. A managed Medicaid plan and a large, regional health plan that used Walgreens Specialty Pharmacy’s Synagis® Simple Program realized year-over-year savings of 27 percent and 25 percent on the cost of Synagis medication, respectively.

Letairis is a medication used for the treatment of high blood pressure in the lungs’ arteries or pulmo-nary arterial hypertension (PAH). It is considered an endothelin receptor antagonist (ERA) because it blocks the effects of endothelin, a substance made by the body that can sometimes lead to the develop-ment of PAH. According to the manufacturer of Letairis, Gilead Sciences, Inc., approximately 50,000 to 100,000 people in the United States are affected by PAH. The medical and surgical interventions associated with PAH can be a high-cost burden. Hospitalization, lung transplantation, and use of pros-tacyclin therapy are the most expensive events in the management of PAH. Clinical studies show that Letairis—taken orally once a day—helped improve a patient’s exercise capacity and delayed worsening

Adherence Award … (continued from p. 1)

continued on p. 3

Rx Matters

©2007 Walgreen Co. All rights reserved. Page 2

of this debilitating disease. Because of the risk of liver injury and birth defects, Letairis is a restricted-access medication through the Letairis Education and Access Program. Walgreens Specialty Pharmacy’s clinical pharmacists participate in the program and upon a patient’s enrollment, will provide benefits investigation services, enhanced therapy management services, and counsel patients about their medication’s significant risks.

Like Letairis, Tracleer, manufactured by Actelion Pharmaceuticals, is used to treat PAH by blocking the effects of endothelin. Tracleer is also an approved ERA, and is known as a dual ERA because it blocks endothelin from binding to both type A endothelin receptors and type B endothelin recep-tors almost equally. Tracleer is administered orally and dosed twice daily. Due to potential side effects, patients must register in the Tracleer Access Program, in which Walgreens clinical pharmacists offer them therapy management and education. For more information about Walgreens Specialty Pharmacy services, call toll free 888-347-3416.

Specialty Pharmacy Fulfillment Service Expands Walgreens Portland, Ore. mail service pharmacy has begun a transition toward becoming a central fulfillment site exclusively for specialty medications and support. Our specialty pharmacy business continues to grow, and this facility has the capacity and flexibility to meet the increasing demand for specialty prescription medications.

The Portland location has long-established relationships with many of the region’s managed care organizations, and our highly skilled employee base there is adept at interacting with patients, prescribers, and insurance plans. Patients whose nonspecialty prescriptions have previously been dispensed from the Portland pharmacy will now have their orders processed and dispensed from our Tempe mail service pharmacy. There should be no interruption in their service, and the seamless transition is expected to be complete by the end of this year.

All nonspecialty prescriptions received at the Portland pharmacy will be flagged and redirected to the Tempe facility with no delay in processing time. For the first few months, those prescription shipments will include information about the location change.

Walgreens Wellness BenefitTM Supports Member Choice Designed to make staying healthy easy and more affordable, the Walgreens Wellness Benefit™ offers a consumer-driven approach to managing one’s health-care. By providing a benefit that supports the purchase of wellness-related items at Walgreens, you enable your members to take a proactive approach to their personal wellness. This program creates a positive plan image and may result in lower overall healthcare costs.

Our Access to Limited … (continued from p. 2)

continued on p. 4

Rx Matters

©2007 Walgreen Co. All rights reserved. Page 3

The Walgreens Wellness Benefit features two product models from which you can choose. In addition, you have the opportunity to select the funding level for your members. You will receive monthly summary statements that include the number of card activations, deactivations, and reloads.

All members receive a welcome letter explaining the details of the program, along with a personalized Walgreens Card™ with the funds preloaded. They can use the card at any of our more than 6,000 stores nationwide where items eligible for purchase are electronically identified by our system at checkout, and payment for them is deducted from the card’s balance. A list of eligible product categories is available at Walgreens.com/FSA.

By offering this added value, you provide an opportunity to motivate changes in your members’ health decisions and behaviors. To learn more, contact your account representative or visit Walgreens.com/WCard.

Walgreens Launches HIV/AIDS Care Team in Orlando Walgreens has created a Customer Care Center in Orlando, Fla. to assist and support persons living with HIV/AIDS. Patients can call from anywhere in the country seven days a week, and from the privacy of their homes, consult with pharmacists about their health condition and medications.

All Customer Care Center pharmacists have received training on HIV/AIDS through a University of Buffalo, N.Y., program that teaches pharmacists throughout the world the clinical care necessary to comfortably and knowledgeably work with HIV/AIDS patients and their healthcare providers. The

extensive program improves pharmacists’ access to new and changing information in HIV pharma-cotherapy and improves patient care. Our retail pharmacists can also utilize the center to access information to help patients while in their stores. After touring the new Customer Care Center, an

associate director of a major pharmaceutical company remarked, “The business model that you have set up to address the needs of the HIV population is truly amazing.”

Persons living with HIV/AIDS may also opt in to a program supported by our Customer Care Center designed to improve medication adherence and patient outcomes. Our specialty pharmacy patients can call toll free 800-573-3602 from 8:00 a.m. to 10:00 p.m. (EST) for more information.

Popularity of Walgreens In-Store Clinics Continues to Grow Since its acquisition of Take Care Health Systems in May of this year, Walgreens clinics are proving to be popular in the communities they serve, and a money-saving option for both patients and payors. Located adjacent to the pharmacy, Take Care Health Clinics* are staffed by nurse practitioners who of-fer patients diagnosis and treatment of routine medical conditions, diagnostic screenings, vaccinations, and physician referrals.

Walgreens Wellness Benefit … (continued from p. 3)

continued on p. 5

“The business model that you have set up to address the needs of the HIV population is truly amazing.”

– A major pharmaceutical company executive

Rx Matters

©2007 Walgreen Co. All rights reserved. Page 4

The 63 clinics in Atlanta, Chicago, Kansas City, Las Vegas, Milwaukee, and St. Louis are treating an average of 16 to 20 patients per day per clinic. Patients appreciate the average visit taking approxi-mately 30 minutes, compared with an emergency room’s average visit of three to four hours. In addi-tion, the average cost for services at Take Care Health Clinics is $65, while an emergency room visit can cost upward of $400.

Take Care Health Systems has partnered with multiple national insurance plans to provide covered services to patients, as well as multiple regional plans, including local Blue Cross and Blue Shield plans, Medicare, and Medicaid. National carriers include Aetna, CIGNA, Coventry, Great West, Humana, Multiplan, and UnitedHealthCare. Take Care Health System’s goal is to accept the majority of insurance plans in all of the regions where they operate so that plan members only pay

their applicable copay at the time of their visit. Approximately 70 percent of patients visiting our clinics are covered by insurance, while the remainder pay for their service with cash.

Since July 2006, Take Care Health Clinics have saved the health-care system approximately $8.6 million. Walgreens expects to have more than 400 clinics operating in its stores by the end of 2008.

* Managed by Take Care Health Systems, LLC with services provided by local operators.

Help Your Members Prepare for Flu and Pneumonia SeasonThis is the beginning of flu season and the government—promising a more-than-ample supply of flu vaccine: up to 132 million doses—is urging all Americans to be vaccinated early. Each year, the flu infects up to 20 percent of the population, resulting in the hospitalization of 200,000 people and the deaths of 36,000.

At highest risk are people over 50 and under 5, anyone with asthma, heart disease, weakened immune systems or other chronic illnesses, and pregnant women. In addition, relatives and caregivers of those people, as well as healthcare workers who could infect the vulnerable are encouraged to be vaccinated.

From October through December, Walgreens will do its part to keep your members healthy by offering flu and pneumonia vaccines. More than 2,000 Walgreens pharmacists have been trained and certified in Pharmacy-Based Immunization Delivery, and will administer the vaccines in 3,400 of our more than 6,000 stores throughout the country, with the balance administered by a third-party provider. The influenza vaccination has been shown to reduce the number of visits to healthcare providers by up to 44 percent, reducing plans’ overall healthcare costs.

In Store Clinics … (continued from p. 4)

continued on p. 6

©2007 Walgreen Co. All rights reserved. Page 5

Rx Matters

Adults 18 years of age and older can receive the flu and pneumonia vaccines. Adolescent vaccines are subject to state laws. Your members can locate a Walgreens pharmacy by calling 800-FLU-9950 (800-358-9950) or visiting Walgreens.com/flu. For their convenience, and to be waited on promptly on clinic days, we encourage your members to preregister in person at any Walgreens store up to 14 days in advance.

Rx Drug Update The Food and Drug Administration (FDA) recently approved the following new medications:

Drug Name Company/ Availability

Indication(s) Dose Form(s)

Regimen AWP as of Sept. 2007

Xyzal® (levocetirizine) tablets

UCB and sanofi-aventis

Fall 2007

Treatment of symptoms of allergic rhinitis and chronic idiopathic urticaria

5 mg tablets One tablet once daily

$2.81 per tablet

Exelon® (rivastigmine) transdermal system

Novartis Currently available

Treatment of dementia associated with Alzheimer’s and Parkinson’s disease

4.6 mg per 24 hr and 9.5 mg per 24 hr patches

One patch once daily

$7.04 per patch

Divigel® (estradiol) gel

Upsher-Smith Currently available

Treatment of hot flashes associated with menopause

0.1% topical gel

One dose packet applied once daily

$2.26 per single-dose gel packet

Zyflo CR™ (zileuton) extended-release tablets

Critical Therapeutics Fall 2007

Treatment of asthma 600 mg tablets Two tablets twice daily

NA

Letairis™ (ambrisentan) tablets

Gilead Sciences Currently available

Treatment of pulmonary arterial hypertension

5 mg and 10 mg tablets

One tablet once daily

$164.17 per tablet

Nuvigil™ (armodafinil) tablets

Cephalon Fall 2007

Treatment of excessive sleepiness associated with sleep apnea/hypopnea, narcolepsy, and shift-work sleep disorder

50 mg, 150 mg, and 250 mg tablets

One tablet once daily

NA

Exforge® (valsartan/amlo-dipine) tablets

Novartis Currently available

Combination product for treatment of hypertension

160 mg/5 mg, 160 mg/10 mg, 320 mg/5 mg, 320 mg/10 mg tablets

One tablet once daily

$2.70 per 160 mg/ 5 mg tablet

$3.06 per 160 mg/ 10 mg tablet

$3.42 per 320 mg/ 5 mg tablet

$3.88 per 320 mg/ 10 mg tablet

Flu Season … (continued from p. 5)

©2007 Walgreen Co. All rights reserved. Page 6

Rx Matters

New Rx Indications The following medications have been approved by the FDA for new or expanded indications:

Drug Name Original Indication New Indication

Lyrica® (pregabalin) capsules Treatment of partial seizures, pain following shingles, and pain associated with diabetic neuropathy

Treatment of fibromyalgia

Tindamax® (tinidazole) tablets Treatment of trichomoniasis, giardiasis, and amebiasis

Treatment of bacterial vaginosis

Norditropin® (somatropin [rDNA origin]) injection

Treatment of growth hormone deficiency Treatment of short stature in children with Noonan syndrome

Upcoming Conferences Walgreens will participate in the following health plan conferences this fall. Please stop to meet our representatives, and learn about the many products and services we have available for you and your members.

Dates Conference Location Booth or Table

October 22-23 Florida Association of Health Plans Annual Conference

Four Seasons ResortPalm Beach, Fla.

20

Communication Materials With Your Members In MindWalgreens has created a number of communication materials that describe our healthcare products and services. These materials are available in PDF format and can easily be posted on your web site for access by your members. Some materials can be translated into Spanish or customized to include plan-specific information to suit your needs. Contact your account representative for more information.

Mark Your CalendarYou and your members may be interested in this list of health-related observances for the month of October. For more information, log on to the sponsoring organization’s web site. For a complete observance list for the entire year, visit the National Health Information Center’s web site at: www.healthfinder.gov.

Observance Web Site

Talk About Prescriptions Month www.talkaboutrx.org

National Breast Cancer Awareness Month www.nbcam.org

Healthy Lung Month www.lungusa.org

Lupus Awareness Month www.lupus.org

Respiratory Care Week (October 21 to 27) www.aarc.org/rcweek

©2007 Walgreen Co. All rights reserved. Page 7

Rx Matters

Walgreens Specialty Pharmacy Pipeline Report Available The Walgreens Specialty Pharmacy Pipeline Report focuses on drugs that are newly approved— or being tested by the Food and Drug Administration. To access the 2007 Third Quarter report, go to WalgreensHealth.com, select Specialty Pharmacy, then Drug Pipeline Reports on the left side of your screen.

Let Us Hear From YouYour comments, questions, and suggestions are always welcome. If there is a topic you would like us to address in a future issue of Rx Matters, please advise your account representative.

Walgreens Fund-Raising Benefits Juvenile Diabetes Research Foundation International Since 1997, through its sale of “paper sneakers,” Walgreens has raised more than $10 million for the Juvenile Diabetes Research Foundation International (JDRF) in support of its research and education programs. With the 2007 theme “It’s Good For the Sole,” Walgreens offered its customers in its more than 6,000 stores throughout the United States and Puerto Rico the opportunity to purchase a paper sneaker for $1. The Company donated all proceeds to JDRF. This year’s campaign ran in stores through September 30.

In addition, Walgreens employees have the opportunity to contribute to JDRF through the Walgreens Charity Choice Program via payroll deduction throughout the year. In October, thousands of Walgreens employees participated in their local JDRF “Walk to Cure Diabetes.” Walgreens is a national sponsor of JDRF.

Our Patients Say It Best:A recent survey of 12,563 Walgreens Specialty Pharmacy patients with a 30 percent response rate, reports that 97 percent would recommend our central fulfillment center to others!

Rx Matters

©2007 Walgreen Co. All rights reserved. WAG7324-1007 Page 8

To access Rx Matters online, go to www.WalgreensHealth.com/mcnewsletter.

For information about Walgreens Health Services, call 866-728-5795 or e-mail rxservices@walgreens.com.

Editorial Board

Editor Kevin J. Duffy Designer Rabel Shamuel

Corporate Office 1411 Lake Cook Rd., Deerfield, IL 60015Brand names are the property of their respective owners.

Articles in Walgreen Co. Rx Matters may be reprinted only by clients of Walgreen Co., or respective agent(s) of clients. Please attach the following statement: Reprinted with permission. ©2007 Walgreen Co. All rights reserved.