Omnicare (OCR) 8-K JP Morgan 29th Annual Healthcare Conference

JP Morgan 29th Annual
Healthcare Conference

January 12, 2011

Exhibit 99.1

Forward-Looking Statements

Except for historical information discussed, the statements made today are
forward-looking statements that involve risks and uncertainties. Investors
are cautioned that such statements are only predictions and that actual
events or results may differ materially.

These forward-looking statements speak only as of this date. We undertake
no obligation to publicly release the results of any revisions to the forward-
looking statements made today, to reflect events or circumstances after
today or to reflect the occurrence of unanticipated events.

To facilitate comparisons and enhance understanding of core operating
performance, certain financial measures have been adjusted from the
comparable amount under Generally Accepted Accounting Principles
(GAAP).A detailed reconciliation of adjusted numbers to GAAP is posted
the Investor Relations section of our Web site at http://ir.omnicare.com.

2

Omnicare Today

Omnicare Today…
A Leading Provider of Pharmacy Services

•Long-term care pharmacy

–Pharmacy services for skilled nursing,
assisted living, chronic care and other settings

–47 states, District of Columbia and Canada

–Dispenses over 110 million prescriptions/year

–Industry leader

•Specialty care

–Supports patients, providers, care-givers,
nurses, physicians and pharma-bio
companies

–Dispenses over 8 million prescriptions/year

–Emerging provider with growth rates
outpacing industry average

Instituting a renewed emphasis on customer service while

transitioning to an “operations-focused” company

4

Customer retention issues have been driven largely by inconsistent service
delivery efforts, acquisition program challenges and medication availability
issues (impacted by changing admission schedules to SNFs)

Pay cut - July 2009

Focus on Customer Service
Operational Issues Have Inhibited Customer Growth

5

Focus on Customer Service
Elements to Improving Customer Service

Net Bed
Growth

Problem

Solution

Result

6

Management Team Changes
New Team Focused on Execution and Growth

•Appointment of John Figueroa as CEO

–President of McKesson’s U.S. Pharmaceutical Group
($90 billion business)

–Strong operations background, motivating leader

–Has deep understanding of Omnicare through McKesson relationship
and a broad appreciation for the industry

–Successful track record

•Additional talent added to Omnicare team

–President of Specialty Care

–SVP of Finance

–SVP of Human Resources

–SVP of Trade Relations

–Promoted five operators to lead newly defined LTC divisions

7

Transitioning to an Operations-Driven Company

•Focus on corporate culture

–Management team changes

–Instill collaborative environment,
encourage employee innovation

–Organization-wide focus on the customer

–Reinforce a commitment to compliance

•Reallocation of resources

–Align employee interests

–Reshape the organization to bring it
closer to the customer

–Improve accountability with divisional
realignment

8

Transitioning to an Operations-Driven Company
Initiatives Focused on Organic Growth

•Enhance the customer experience

–Align customer retention with incentive programs

–Reposition leading technology offering

–Invest in new technologies closer to
the customer

•Improve selling effectiveness

–Re-engage sales consulting group

–Improve coordination of selling process

–Revamped incentive programs

9

Transitioning to an Operations-Driven Company
Productivity Improvements

•Drug purchasing

•Strategic sourcing

•Operating initiatives

10

Industry Outlook

Regulatory Environment
Current Issues

•RUG-IV

–Medicare reimbursement changes impacting SNFs

–Effective 10/1/10

–Intent is to drive up acuity levels in nursing homes
(through a greater mix of clinically complex residents)

–May have the effect of increasing average length of stay within the Part A patient
population

•Federal Upper Limit (“FUL”) definitions

–No less than 175% of the weighted average manufacturer’s price (“AMP”) based
on utilization

–Effective 10/1/10 (the first FUL list has not yet been published)

–Some Medicaid, facility contracts impacted (Part D contracts restructured to
another reimbursement benchmark)

–In most cases, new FULs would have to be lower than MACs to impact
reimbursement for relevant payers

12

Regulatory Environment
Current Issues

•Short-cycle dispensing

–Weekly dispensing for branded drugs dispensed under Part D

–Effective 1/1/12 (although currently in 60-day
comment period)

–Expected to impact approximately
6 million scripts, or 5% of prescriptions
dispensed

–We believe the automation within

our pharmacies creates an advantage
over competitors not using automation

13

Demographic Trends
Aging Population Shaping Healthcare

•Life expectancy continues to lengthen

•Significant population mix shift towards seniors

Source: U.S. Census Bureau

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Pharmaceutical Market
Trends

•Branded drugs

•Major market shift to generic drugs

•Development and utilization of
specialty drugs increasing

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Brand to Generic Drugs
Increasing Utilization of Generics

(1)Omnicare’s generic prescriptions dispensed as a percent of total scripts

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Major Shift to Generic Drugs
Benefits

•Omnicare’s sourcing abilities create
unique opportunity within industry

•Reduces sales, but increases gross
profit - both dollars and margins

•Favorable impact on working capital

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Major Shift to Generic Drugs
Typical Generic Drug Life Cycle

NOTE: Graph is for illustrative purposes only. Not representative of every generic drug, as each generic drug has unique characteristics.

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(1)All generic launches are subject to change due to litigation or pediatric exclusivity.

(2)Drugs already launched shown in gray and italics

2010	2011	2012	2013
Arimidex	Fazaclo	Actos	Aciphex
Cozaar	Femara	Diovan	Asacol
Effexor ER	Gabitril	Geodon	Avodart
Exelon Caps	Levaquin	Invega	Cymbalta
Flomax	Lipitor	Lexapro	Humalog
Lovenox	Tricor	Lidoderm	Lupron Depot
Merrem Inj.	Uroxatrol	Plavix	Niaspan SR
Mirapex	Vancocin Caps	Seroquel	Oxycontin
Prevacid Soltabs	Xalatan	Singulair	Renagel
Aricept	Zyprexa	Xopenex	Travatan

2010-2013 Potential Patent Expirations(1),(2)
Geriatric Market

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Specialty Pharmaceuticals
A Growth Industry

(1)Source: EvaluatePharma

Pharmaceutical Market Share(1) by Drug Type

Mail order specialty pharmacy

Outsourced services for
biotechnology firms

Omnicare’s institutional
pharmacies

Conventional
Drugs, 72%

Other, 19%

Omnicare’s Positioning Within Specialty Pharmaceuticals…

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Growth

Long-Term Care

•Skilled Nursing Facilities

–Selected acquisitions

•Assisted Living Facilities

–Three-pronged growth opportunity

22

Specialty Care
Growth Outside Institutional Setting

Omnicare specialty care growth has been robust…and opportunities
exist to further accelerate growth through:

•Addition of new leadership

•Tighter coordination of efforts

•Leveraging long-term care business and relationships to create new
opportunities

•Penetrate additional disease states (for ACS)

–Primary disease states currently multiple sclerosis and oncology

•Potential additional acquisitions to fill-out portfolio in the future

Two-year CAGR(1) for Omnicare’s specialty care businesses = 28.1%

(1)Quarterly revenues based on third quarter 2010 results for Advanced Care Scripts, RxCrossroads
and excelleRx (as compared with third quarter 2008 results)

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Financial Elements

(1)Excludes discontinued operations.

(2)Excludes special items. A reconciliation of this non-GAAP information is available on Omnicare’s Web site under ‘Supplemental Financial Information’ from
the ‘Investors’ page.

Financial Performance
2010 YTD (In $ millions, except per share data)

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Focus on Cash Flows
Demonstrates Quality of Earnings

(2)Cash flows from continuing operations includes approximately $38 million of settlement payments in 2Q10, $21 million of settlement payments in 3Q10 and
$7 million of separation-related payments related to three former Omnicare executives in 3Q10.

(3)Excludes special items. A reconciliation of this non-GAAP information is available on Omnicare’s Web site under ‘Supplemental Financial Information’ from
the ‘Investors’ page.

YTD Cash Flows from Continuing Operations(1),(2) and Interest Expense vs.

YTD Adjusted EBITDA(1),(3) (in $ millions)

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Capital Returned to Shareholders
2010 YTD (In $ millions)

(1)Cumulative % Returned = (YTD Dividends Paid + YTD Share Repurchases) / 12/31/09 Market Capitalization of $2,908.4 million.

34.1% of net operating cash flows returned to shareholders through share

repurchases and dividends during the first three quarters of 2010.

(1)Cumulative % Returned = (YTD Dividends Paid + YTD Share Repurchases) / 12/31/09 Market Capitalization of $2,908.4 million.

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(1)Assumes convertible debentures due 2035 are put to the company in 2015 with related tax capture included.

(2)Debt amounts shown exclusive of unamortized debt discount.

(3)In $ millions

Capital Structure
Recent Initiatives Create More Flexibility for FCF

Recent capital restructuring initiatives have extended maturities,

providing more flexibility for capital allocation strategies

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Omnicare’s Fundamental Value Drivers

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Outlook

2011 Drivers

Major 2011 Drivers	1st Half 2011	2nd Half 2011
•Brand-to-generic and drug price inflation	Positive	Positive
•Annualized pricing adjustments	Negative	Neutral
•Annualized impact of bed losses	Negative	Neutral
•Impact of payroll costs	Negative	Negative
•Productivity improvements	Positive	Positive

2011 drivers point to a weaker 1st half but stronger 2nd half.

2011 guidance expected to be provided on Q4 conference call.

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Longer-Term Drivers
Omnicare: A Platform to Build Upon

We believe investments made in 2011
will position the company for long-term
profitable growth in 2012 and beyond

2011

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JP Morgan 29th Annual
Healthcare Conference

January 12, 2011