Wall Street Transcript Interview with Jeff Park, Executive Vice President and Chief Financial Officer at Catamaran Corporation (CTRX)

Wall Street Transcript

67 WALL STREET, New York - October 25, 2012 - The Wall Street Transcript has just published its Health Care IT Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Electronic Health Record Adoption - HIT Consolidation Activity - Platform Interoperability and Data Analytics - Analytics for Evidence-Based Care Protocols - Electronic Health Records Implementation - HITECH Act Incentives - Affordable Care Act

Companies include: Catamaran Corporation (CTRX) and many others,

In the following excerpt from the Health Care IT Report, the CFO of Catamaran discusses the outlook for his company for investors:

TWST: Would you begin with a brief historical sketch of the company and a picture of it operations at the present time?

Mr. Park: Absolutely. We started out selling tools and technology to the PBM industry. That's the heritage of our company. We were very successful in supporting lots of different health plans, middle market and large PBMs, and had grown to process close to 400 million transactions annually.

The business model was to find other services and tools that we could wrap around our current client base, and that's when we started to expand into offering PBM services. In 2008, we made an acquisition of one of our PBM customers and that really pole-vaulted our PBM capabilities.

Since that time, we've completed six acquisitions and been very successful at organic growth of our business. Our principal job as a PBM is to save clients money on drug spend. We do that by ensuring that members have great service, but that they also are taking the most appropriate medication at the lowest cost.

TWST: How would you describe the outlook for the industry in general and for Catamaran in particular?

Mr. Park: The principal dynamics that drive the industry are drug spend and consumption of medication. We obviously have an aging population, which is increasingly consuming more and more medication. We have an increase in chronic diseases and conditions such as obesity, which drives lots of other health conditions, and these are really the factors that are driving medication consumption in the country. We are also undergoing more and more hospitalizations and physician visits as we get older. Now, one of the ways that we can manage hospital costs and physician costs is to stay compliant with our medication regime. Those are the things that keep us out of the hospital. When you look at the industry, it's definitely continuing to see good growth and demand from these macro drivers.

Our job is to really look at ways to help clients save money. In the last four years, with a challenging economy, clients are looking for more and more ways to save money. That's one of the reasons our business has been so successful at growing in periods of economic challenges. We sell savings to clients.

Looking forward into the future, we're seeing some unique trends around specialty medications for high-cost chronic diseases such as cancer, growth hormones, infertility, infusion, things like those that basically have no generic currently available. If you look at those trends, you see that specialty medications are projected to take almost 40% of the drug spend over the next 10 to 15 years. That's a high-growth area in the industry.

TWST: What's the competitive landscape for Catamaran? From what I have read, the company has vaulted into the fourth- or fifth-largest PBM.

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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