Wayne Pharmacy Student Presentation Final to Post

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OneTouch Makes Testing Accessible for All Patients.

LifeScan Confidential Do Not Distribute

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Sharon Ditata MT(ASCP) Customer Development Representative

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Diabetes affects

1 in 12 People today

Source: CDC, National Diabetes Fact Sheet, 2011

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Diabetes will affect

1 in 3 people by the year 2050

Source: Boyle PP et al. CDC Population Health Metrics 2010, 8:29

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Source: TRx Share, Retail Sept YTD 2012. Data Source - IMS Xponent TRx Share. *Some health plans may have more than one test strip covered at the lowest co-pay.

Test Strip Share by Manufacturer*

New Product Innovations

Lowest Co-pay on the Most Health

Plans*

Sales Force Strength

Leading Share of Voice in

Advertising

OneTouch Ultra Family of Products

#1 Recommended Brand by

Endocrinologists

Partner with the category leader.

Total Rx POS (%)

LifeScan Abbot Roche Bayer PrivateLabel

OtherMfg

40.5%

19.2% 18.9% 14.4%

5.7% 1.3%

Abbott

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Diabetes Category Opportunity

More shoppers

Repeat traffic

Higher basket ring (front & back

of store).

Long-term opportunity drive shopper loyalty among high value shoppers.

Annual retail spend : diabetes patient - up to $6,875*

*The Full value of a Diabetes Patient. Smart Retailing Rx 2013

Rate of diabetes diagnosis is increasing

Chronic disease

Co-morbid nature of disease drives additional needs

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Coverage Confusion

9

Commercial Coverage Medicare

Cost is a leading reason why patients

stop testing

Confused about their co-pays

Move to mail order due to perceived

benefits

Confused about their options

Partner with OneTouch to keep your patients at retail

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37% Retail

35% Mail Order

28% Non-Retail

SMBG Category Overview Payer Mix

Cash

Retail 11% Cash 27% Government 62% Commercial

Mail Order 59% Government 41% Commercial

Data Source IMS DDD, 12 months ending June 12, Category size, mix, and share based on total test strip volume.

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OneTouch Commercial Coverage.

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Commercial Coverage Challenges Confusion with misconceptions and clutter


Co-pay card usage:


2012 Typical Average Co-Pays in 3-Tier Benefit Design

Patients could be saving up to:

$42/month

Data Source: Health Strategies Group: Health Plan Pharmacy Management Trends March 2013 data from 2012

OneTouch Commercial Rx Access Unmatched patient savings

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Scenario

Patient chooses a Tier 3 product (such as Abbott, Freestyle, Bayer Contour, or Store Brand) that is currently listed in Tier 3 and fills at retail twice. On the third fill, the following will occur:

1. Tier 3 product is no longer covered at retail patient pays full price 2. Patient is asked to switch to a preferred product from Tier 1 (currently either

OneTouch or Accu-Chek) 30-day fill at retail: average co-pay $10 90-day fill at PBM Mail: average co-pay $25

3. Patient stays with non preferred product but must switch to pharmacy mail (Medco), pay corresponding Tier 3

30-day fill at retail: average co-pay $50

NOTE: Not all members with a pharmacy benefit participate in this program.

*This is a case study of the United Healthcare Select Designated Pharmacy Program. This program is excluded in the following states: NY, NJ, CT, LA, AR, and MD.

Case Study: UnitedHealthcare Programs Partnering with retail to meet formulary & cost objectives

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OneTouch Verio and Ultra Test Strips are the only test strips covered on the

Express Scripts National Preferred Formulary

Patients on all other brands will have to switch as of

January 1, 2014 or pay list price.

OneTouch Verio and Ultra Test Strips are preferred1 on the CVS Caremark

National Formulary

As of January 1, 2014, Abbott FreeStyle and Bayer CONTOUR Test Strips are no longer reimbursed by

many CVS Caremark plans.2

1 Preferred: For most plans, products that are usually covered at the lowest co-payment or co-insurance. 2 Plans that opt-in to the CVS Caremark 2014 Formulary Exclusion List. The information provided is not a guarantee of coverage or payment. Actual benefits are determined by each plan in accordance with its respective policies and procedures. All trademarks are the property of their respective owners.

OneTouch: Sole Source Carefirst BCBS as of 7/1/13 Express Scripts as of 1/1/14 RegenceRx as of 1/1/14 Illinois Medicaid as of 7/13/13 .and many other OneTouch Regional Contract wins

Opportunity to convert

non-formulary patients to OneTouch.

OneTouch Commercial Access Expanding OneTouch Commercial Coverage in 2014

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Drive Loyalty Among BGM Patients by delighting Patients at the Pharmacy

Patient presents script to

Pharmacist/Tech

Prescription is adjudicated and

processed

Patient receives test strip

Patient presents script to Pharmacist/Tech

Insurance coverage is checked to determine

lowest copay

Prescription is adjudicated and

processed

Patient receives test strip

Quick extra step could save patients up to $42 per box

Current Process

Future Process

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OneTouch Commercial Access Meter Offerings Available

Universal Meter Voucher Give patients the right meter with a single ID no-charge meter voucher.

Patient Starter Kits with Meter Card at HCP Offices Meter adjudicated at Pharmacy with branded prescription.

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OneTouch Medicare Coverage.

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Coverage Confusion

19

Commercial Coverage Medicare

Cost is a leading reason why patients

stop testing

Confused about their co-pays

Move to mail order due to perceived

benefits

Confused about their options

Partner with OneTouch to keep your patients at retail

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Medicare Coverage Clarity


Supplemental (MediGap)

With Medicare Part B and most supplemental insurance plans,

patients will have

$0 out-of-pocket expense for OneTouch

Products1

Medicare DME: Durable Medical Equipment

80%

20%

1 Not a guarantee of coverage and payment. Coverage and payment may be subject to co-insurance, deductible and patient eligibility requirements 20

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Medicare Challenges Coverage changes causing confusion and shift to mail order


Perceived benefits of mail order: More cost effective More convenient Automatic refills and reminders

Do I have to go to mail order?

Data Source: Roper Patient Data 2010

Medicare reimbursement changes have caused confusion among pharmacists and patients

What is covered?

Where can I get my favorite brand?

Coverage Confusion Shift to Mail Order

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*Not a guarantee of coverage and payment. Coverage and payment may be subject to co-insurance, deductible and patient eligibility requirements.

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Multiple OneTouch Meters

are available for your Medicare patients at no charge*. Also get access to offers on ancillary products.

OneTouch also offers rebates on OneTouch Brand Test Strips1

OneTouch Medicare Access Medicare and Medicaid Assignment Program (MAP): How does it work?

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No special Medicare SKUs means less hassle

Completely automatic program for faster payment

1Applicable if customer is signed up for existing MAP program. *Some limitations may apply

Slide Number 1Slide Number 2Slide Number 3Slide Number 4Partner with the category leader.Partner with the category leader.Slide Number 7Diabetes Category Opportunity Coverage ConfusionSlide Number 10Slide Number 11Commercial Coverage Challenges Confusion with misconceptions and clutterSlide Number 13Slide Number 14Slide Number 15Drive Loyalty Among BGM Patientsby delighting Patients at the PharmacyOneTouch Commercial AccessMeter Offerings AvailableSlide Number 18Coverage ConfusionMedicare Coverage ClarityMedicare Challenges Coverage changes causing confusion and shift to mail order OneTouch Medicare AccessMedicare and Medicaid Assignment Program (MAP): How does it work?

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Wayne Pharmacy Student Presentation Final to Post