e425
FILED BY EXPRESS SCRIPTS, INC.
PURSUANT TO RULE 425 UNDER THE SECURITIES ACT OF 1933
AND DEEMED FILED PURSUANT TO RULE 14a-12
UNDER THE SECURITIES EXCHANGE ACT OF 1934
SUBJECT COMPANY: EXPRESS SCRIPTS, INC.,
ARISTOTLE HOLDING, INC. AND MEDCO HEALTH SOLUTIONS, INC.
COMMISSION FILE NO. 0-20199
Proposed Merger Goes To Washington
George Paz Testifies Before House Judiciary Committee
The
following is a message from George Paz, chairman & CEO posted on
the Express Scripts, Inc. employee
website.
As we move forward with our merger with Medco, we will have a number of opportunities to explain
why combining our companies will benefit our country and our clients. One of those took place
Tuesday as I testified before the House Judiciary Subcommittee on Intellectual Property,
Competition and the Internet.
It was an exceptional opportunity for me to tell a story that you all know well: how Express
Scripts is improving the health of Americans by making the use of prescription drugs safe,
affordable and accessible.
Our merger with Medco, if ultimately approved, would accelerate our ability to do what weve always
done, but importantly, it also would provide us new ways to bring innovative solutions to clients
and patients.
Taking our combined capabilities and applying it to Americas biggest issue the rising cost of
healthcare is a noble cause that we are all proud to pursue. It was an honor to represent each of you
and what your work represents in our never-ending commitment to serving patients.
We know that Congress wants to understand how combining two leading pharmacy benefit managers is in
the publics best interest. On Tuesday, Medco CEO David Snow and I explained in great detail the
important role of PBMs, the possibilities inherent in bringing our companies together and outlined
specifics on the ways we can drive out waste, bring down costs and improve outcomes.
We will create more efficiency in the supply chain and achieve greater adherence to medical
therapies through combining our behavioral and clinical approaches. In addition, we can use our
collective expertise to better manage the cost and care associated with specialty medications,
enhance our mail pharmacy technology, and accelerate the research, development and deployment of
trend-management solutions to address inefficiencies in the marketplace.
The bottom line is this: Clients and patients benefit from mergers that provide enhanced
efficiencies and capabilities. Bringing Express Scripts and Medco together will achieve this in a
very competitive marketplace. We look forward to moving ahead as a combined organization to provide
our invaluable services to the nation.
FORWARD-LOOKING STATEMENTS
Cautionary Note Regarding Forward-Looking Statements
This material may include forward-looking statements, both with respect to us and our industry,
that reflect our current views with respect to future events and financial performance. Statements
that include the words expect, intend, plan, believe, project, anticipate, will,
may, would and similar statements of a future or forward-looking nature may be used to identify
forward-looking statements. All forward-looking statements address matters that involve risks and
uncertainties, many of which are beyond our control. Accordingly, there are or will be important
factors that could cause actual results to differ materially from those indicated in such
statements and, therefore, you should not place undue reliance on any such statements. We believe
that these factors include, but are not limited to, the following:
STANDARD OPERATING FACTORS
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Our ability to remain profitable in a very competitive marketplace is dependent upon
our ability to attract and retain clients while maintaining our margins, to differentiate
our products and services from others in the marketplace, and to develop and cross sell new
products and services to our existing clients; |
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Our failure to anticipate and appropriately adapt to changes in the rapidly changing
health care industry; |
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Changes in applicable laws or regulations, or their interpretation or enforcement, or
the enactment of new laws or regulations, which apply to our business practices (past,
present or future) or require us to spend significant resources in order to comply; |
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Changes to the healthcare industry designed to manage healthcare costs or alter
healthcare financing practices; |
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Changes relating to our participation in Medicare Part D, the loss of Medicare Part D
eligible members, or our failure to otherwise execute on our strategies related to
Medicare Part D; |
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A failure in the security or stability of our technology infrastructure, or the
infrastructure of one or more of our key vendors, or a significant failure or disruption
in service within our operations or the operations of such vendors; |
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Our failure to effectively execute on strategic transactions, or to integrate or
achieve anticipated benefits from any acquired businesses; |
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The termination, or an unfavorable modification, of our relationship with one or more
key pharmacy providers, or significant changes within the pharmacy provider marketplace; |
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The termination, or an unfavorable modification, of our relationship with one or more
key pharmaceutical manufacturers, or the significant reduction in payments made or
discounts provided by pharmaceutical manufacturers; |
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Changes in industry pricing benchmarks; |
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Results in pending and future litigation or other proceedings which would subject us to
significant monetary damages or penalties and/or require us to change our business
practices, or the costs incurred in connection with such proceedings; |
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Our failure to execute on, or other issues arising under, certain key client contracts; |
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The impact of our debt service obligations on the availability of funds for other
business purposes, and the terms and our required compliance with covenants relating to
our indebtedness; our failure to attract and retain talented employees, or to manage
succession and retention for our Chief Executive Officer or other key executives; |
TRANSACTION-RELATED FACTORS
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Uncertainty as to whether Express Scripts, Inc. (Express Scripts) will be able to
consummate the mergers with Medco Health Solutions, Inc. (Medco) on the terms set forth in
the merger agreement; |
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The ability to obtain governmental approvals of the mergers; |
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Uncertainty as to the market value of Express Scripts merger consideration to be paid
and the stock component of the Medco merger consideration; |
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Failure to realize the anticipated benefits of the mergers, including as a result of a
delay in completing the mergers or a delay or difficulty in integrating the businesses of
Express Scripts and Medco; |
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Uncertainty as to the long-term value of Express Scripts Holding Company (currently
known as Aristotle Holding, Inc.) common shares; |
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Limitation on the ability of Express Scripts and Express Scripts Holding Company to
incur new debt in connection with the transaction; |
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The expected amount and timing of cost savings and operating synergies; and |
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Failure to receive the approval of the stockholders of either Express Scripts or Medco
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The foregoing review of important factors should not be construed as exhaustive and should be
read in conjunction with the other cautionary statements that are included herein and
elsewhere, including the risk factors included in Express Scripts most recent reports on Form
10-K and Form 10-Q and the risk factors included in Medcos most recent reports on Form 10-K
and Form 10-Q and other documents of Express Scripts, Express Scripts Holding Company and Medco
on file with the Securities and Exchange Commission (SEC). Any forward-looking statements
made in this material are qualified in their entirety by these cautionary statements, and there
can be no assurance that the actual results or developments anticipated by us will be realized
or, even if substantially realized, that they will have the expected consequences to, or
effects on, us or our business or operations. Except to the extent required by applicable law,
we undertake no obligation to update publicly or revise any forward-looking statement, whether
as a result of new information, future developments or otherwise.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
This communication is not a solicitation of a proxy from any stockholder of Express Scripts, Medco
or Express Scripts Holding Company. In connection with the Agreement and Plan of Merger among
Medco, Express Scripts, Express Scripts Holding Company, Plato Merger Sub Inc. and Aristotle Merger
Sub, Inc. (the Merger), Medco, Express Scripts and Express Scripts Holding Company, intend to
file relevant materials with the SEC, including a
Registration Statement on Form S-4 filed by Express Scripts Holding Company that will contain a
joint proxy statement/prospectus. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THESE MATERIALS
WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT MEDCO, EXPRESS
SCRIPTS, EXPRESS SCRIPTS HOLDING COMPANY AND THE MERGER. The Form S-4, including the joint proxy
statement/prospectus, and other relevant materials (when they become available), and any other
documents filed by Express Scripts, Express Scripts Holding Company or Medco with the SEC, may be
obtained free of charge at the SECs web site at www.sec.gov. In addition, investors and security
holders may obtain free copies of the documents filed with the SEC by directing a written request
to:
Mackenzie Partners, Inc.
105 Madison Avenue
New York, New York 10016
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or qualification under the
securities laws of any such jurisdiction. No offering of securities shall be made except by means
of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
PARTICIPANTS IN THE SOLICITATION
Express Scripts, Express Scripts Holding Company and Medco and their respective executive officers
and directors may be deemed to be participants in the solicitation of proxies from the security
holders of either Express Scripts and Medco in connection with the Merger. Information about
Express Scripts directors and executive officers is available in Express Scripts definitive proxy
statement, dated March 21, 2011, for its 2011 annual general meeting of stockholders. Information
about Medcos directors and executive officers is available in Medcos definitive proxy statement,
dated April 8, 2011, for its 2011 annual general meeting of stockholders. Other information
regarding the participants and description of their direct and indirect interests, by security
holdings or otherwise, will be contained in the Form S-4 and the joint proxy statement/prospectus
regarding the Merger that Express Scripts Holding Company will file with the SEC when it becomes
available.