CI - Earnings call transcript Q3 2020

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Operator

Good morning. Ladies and gentlemen, thank you for standing by for Cigna’s Third Quarter 2020 Results Review. At this time, all callers are in a listen-only mode.

We will conduct a question-and-answer session later during the conference and review procedures on how to enter the queue to ask questions at that time. [Operator Instructions] As a reminder, ladies and gentlemen, this conference including the question-and-answer session is being recorded.

turning over by Ms. begin will the to conference We Alexis Jones. Ms. Please ahead, go Jones.

Alexis Jones

With an line morning, for our Lead Alexis Relations. you and President Principal on today’s Investor Good Officer; thank am and joining a financial financial Financial Chief everyone, including Cigna’s topics, and David morning this for Officer. Chief today, results, Cigna’s of well our are remarks our call. Executive I David quarter number for XXXX me Cordani, update and XXXX. Palmer, In Eric outlook as the as will Eric on Jones, cover third

As our and be with most from risks earnings to future remarks results accounting in measures, directly performance. reconciliation on GAAP today’s describing same which respectively, adjusted contained outlook of our adjusted the principles from the filed materially and in note principal United and in generally in in XXXX actual our determined contained known comparable today’s revenues total of statements, financial labeled financial operations, earnings and operations statements expectations. of from not is cautionary cause adjusted certain our the could adjusted In for accepted measures, some release GAAP. and reports in differ the uses the income that noted term earnings uncertainties shareholder’s posted release, our Investor otherwise uncertainties A A the measures release, income revenues, to including which States current our and income performance. and These measures with cigna.com. subject description We these results, SEC. as recent is to the forward-looking today, basis accordance per financial these making earnings when are use Relations as of section will most risks net to share our Cigna in is we statements are regarding

few a our results will over David, financial call Before turning items to and pertaining disclosures. I cover the to

to First, our our a with of we and XXXX, names previously Evernorth segment reported portfolio. align reported Integrated with either U.S as the third no in across our segment services now changes reflect segment as The and is for Medical Medical. our the launch offered better reporting Health is quarter suite of have underlying as updated reported businesses reported There as previously Evernorth segment. now are to Services to reported

special per integration our or Regarding in we item the million for results, recorded after-tax of share third costs. transaction-related $X.XX $XX quarter, in charge and

special adjustment or a for $XX $X.XX former a after-tax client. share item of We benefit million also per contractual recorded for a

share benefit payments Finally, quarter claim. we million the or related recorded a of special $X.XX after-tax to per our for $XX item risk of receipt

in described and from revenues results. items from today’s As adjusted income adjusted are discussion in financial operations of release, excluded earnings special our

when that any comments will note a performance XXXX prospective on of year share please we impact make basis outlook, we regarding do excludes the Additionally, financial that full including repurchases. future our so

a Finally, Life from Group year Cigna’s earnings for XXXX Disability and assumes our outlook business. full of

to business be in will of call With David. I to XXXX. completed that, to our that the expect fourth continue over of the We divestiture quarter turn

David Cordani

overview turning a to rapidly I comments XXXX performance relative us to history evolving will Eric. over I few Evernorth, on comments dynamic you for I all Thanks, our will strategy how mind a us. Cigna’s of our will recent results, the morning, delivering of accelerated I begin results and to strong joining provide and also our in on positions our top to and Tuesday’s Alexis. certainly by brief today. before for by will on speak environments. third are everyone, building call of conclude few Good continue providing which launch brief comments strong call of thank quarter Then, election

improve the to the world conclusion. around outcome, ever. with changed well-being, Regardless those we is has Certainly, mission not along election. the mind of and serve and than more to of peace clear see health, final relative critical our orderly else awaits to First, the everybody a and we of

critical current are and We to on levels. to privileged with so at discussions new look have in been aisle as of we a the working past. And both ready constructively or to sides healthcare of federal, continue with engaging in the state we administration members local forward do the administration

of their anxiety and health is the that long-term and children mental increase Take positioned. the conditions simply for the society determinants healthcare than that healthcare that lives quo view, is of that at in chronic and with the and eroding American sufficient or forward, cost reinforced U.S. seeing has who on transcends climate. continuing in health individuals status stress, the healthcare Many the regarding no any is to large this shorter COVID-XX. heightened an from and under must election risk of loneliness, is overwhelmed systems states history Looking The needs system unsustainable such as particular diabetes exacerbated less to severe unsustainable COVID-XX from the there In impacts be likely is their live one only increased complications question healthcare that health are crisis results conversation no perfectly today’s underlying system. disparities of only including for And healthcare example not the healthcare status, the is infrastructure. are first health, our pays individual Clearly, of gaps political social circumstances. our unacceptable. challenges, There bottomline focus delivery health parents. by generation our any

healthy the than well the are of and more people, are effective that climate, with meet population plans looking to for needs around struggle together What work as most systems. including governments possible. we on for important employers, way and healthcare world and that caring Cigna, continue unique when to in are simple. most on political they and systems that healthcare is a to underlying delivering In answer ever, treating is we value high body Regardless and our them At the sick, are nationalized services. to is ensuring fact, healthcare find unsustainability of whole just diverse people call rising to as that not the solutions and affordable, systems and for the predictable promise this the affordable, costs mind system both strategy designed more person, is the health focus delivery keeping

of customize us is for demands ensure our every addressing guides our meet decision diverse it our Our our take and strategy and clients, the look to needs patients, we the to and customers action solutions to more value. at

portfolio this with combined those accelerate orientation, our serve driven flexibility, direction and sustainable on targeted innovation attractive differentiated data positioned a for we capital our amassed are capabilities to to have value when deliver growth. we partnership We focus and of and

With their know, delivering you introduced important and strategy. on were Evernorth, healthcare health this with our brand commitment success. innovative portfolio a another overwhelming we dedicated their solutions September we we new unique an and and distinct health invest needs service milestone healthcare As in providers. evolution organizations services employers, and platform in plans, Through recently have these our this of high Evernorth, and platform excitement dedicated for launch performing of of The support demonstrating from our government groups. to in meet and viral was met

market. to With the to Scripts’ example serve option partner home employers, X, Commercial, government reinforces under Accredo plans, choice deep At entities Specialty partnership our and recent brand, clients to our includes shared this go healthcare value Additionally, of for further open for to in beneficial create Prime’s this invest enhancing leverage partnerships. expand Cross/Blue professionals, the our International more platform our is our Evernorth retail our we health This as Prime U.S. the expanded. Evernorth, in capabilities pharmacy Therapeutics. Pharmacy by Shield we more continuing We Prime are Prime affordability further customers. Cigna Plans. and position the services pharmacies which manufacturers. delivery our Express businesses reinforces pursue access time, Through network their the beginning XX to relationship, and broad achieve our further mutually network with administration A Government of increasing to XXXX. pharmacy Blue rebate their commitment on and plans our growing and be U.S. are the network to with Americans will same January and pharmaceutical and relationship through from retail

a client-focus and and We industry customer- and for outstanding approach be for trends known service. will leading delivering continue customer

fourth to shown consecutive that For year am Promoter the have our example, of announce annual Net customer Medicare Score an we I XX, plus achieved increase. an pleased business Advantage

and powerful now in of In well achieve our are an the sustained of plan the marketplace. is addition in just our Evernorth customers example four-star to companies only increase one to This the year-over-year. from plus plans XXXX, brands differentiated in one addition will drive to which we major we into XX% Cigna-branded important Cigna will value and two the be of and today platform, recent continue deliver With and have future. growth rated

our to expectations. with third strong turning results in quarter We line our that performance. were Now, delivered

as COVID-XX. more impact the experienced of and elevated expected, and result, typical a levels we of As to return utilization ongoing

these healthcare We professionals communities customers, also our our times. coworkers, in and continue to take support exceptionally our clients, our actions to challenging our

integration the Additionally, by we and of to remain of on this the Cigna year. complete track Scripts end Express

plans, deliver demonstrating segment, was we the we our with performance, $XX.X billion to Evernorth after-tax clients. health earnings value $X.X and employers government consolidated revenue of bring Our billion. to In continue strong

Within levels. an Medical the will to of as and revenue to saw meet growth, outlook. COVID-XX. global EPS due our are International we typical the increase deliver in continues we utilization revenue as navigate And expected and With XXXX returned our the updated more as segment, results, they to we strong U.S. customers cost quarter business we that needs confident disrupted our our environment as achieve third earnings

XXXX, momentum, Scripts and from Express further including our we number a synergies. combination continued to forward have synergies growth of favorable tailwinds from administrative Looking impacts

by ongoing us and COVID-XX. on positioned level EPS. footprint putting portfolio, and to each within growth We to growth over our U.S. addressable highlight continued and of market aided medical business into platforms. where XX% deeply to $XX are remain in have goal in we both growth, our as by and on to expansion, XX%. targeted well of individual revenue track we and strong drive our to strong growth Medicare costs in-market expansion Government client well-positioned XX% an of range we in strong I’d underlying increased by very specifically impact of growth including $XX continue achieve organic track growth including of market pharmacy growth earnings drive expect both XXXX All-in, script and to increased retention customer headwinds where our for more Diving XXXX, as we from XX% our changes product for we expect projected bit momentum, service continue strategic our largely our Advantage, across driven of specialty a the year-over-year continued

cash flow We momentum million. us attractive $X than strong greater financial significant XXXX significant expect combined will with and operating framework for our beyond. generation capitalized drive ongoing give and flexibility flows a of deleveraging strategic This operating and cash to

before Eric. needs and it summarize history a of approach of This performance over election focused to rapidly environments, turning we transcends any the foremost and in well-being on individuals strong particular dynamic addressing results to cycle. first Now has of delivering the evolving serve. Cigna long health the

and improve build We quarter those day dedication focused the around on colleagues outstanding to strong of than this well-being the delivered our mission our continue of we who serve. another by more we health, every as on mind world of to the XX,XXX peace foundation driven

our were benefit Evernorth will expand the for serve of our further predictable guide affordable, And value ability mission us, continue we clients. and and simple customers, launch fuel strategy Our to healthcare our to strategy patients will exceptional provide of champions the more as individuals. and as our and

our we for we Finally, turn that, and to do, With call. to Eric. detailed forward it guidance on providing fourth quarter complete as over more I earnings will usually look XXXX

Eric Palmer

share Key on include, revenues consolidated I ongoing our good David, XXXX the and morning, adjusted Thanks, the third for our quarter the $X.X discuss of of earnings impact adjusted and Today, and of $XX.X per financial including after-tax COVID-XX quarter of full billion highlights review key adjusted third Cigna’s $X.XX. for will outlook business everyone. earnings results of billion, year. aspects of

rapidly results execution our quarter reflects dynamic year-to-date and environment. businesses a Our this focused in evolving across

will first Evernorth. on Regarding our I segments, comment

earnings quarter Third pretax billion. revenues adjusted grew and billion grew $X.X to adjusted $XX to

by than in Accredo, organic XXXX initiatives. in earnings As growth results quarterly timing to driven the supply were previously discussed, in in second is to of chain weighted cadence of strong continued specialty volumes, half XXX the and the effective quarter earnings Evernorth, services of XXXX. over and strong the momentum quarter Overall, pharmacy and typical fulfilled financial year through were where XXXX, the due and Evernorth’s of chain more of more of certain the customers XX% adjusted a million pharmacy. another and increase results. delivered expansion scripts, script We positive industry-leading its supply continued pharmacy specialty the third execution our initiatives quarter performance Evernorth

Turning to segment. Medical our U.S.

Third stakeholders this utilization levels, we and direct contributions the investment adjusted the in primarily These billion taken lower net the decreased $X.X reflect to especially the insurance our environment. were XXXX, COVID-XX It were and costs related actions of development, have pretax medical more results the tax. quarter revenues to testing $XXX period adjusted typical of related and reflects COVID-XX return disruptive to prior million. and throughout the second also support the income. return of earnings impacts include health unfavorable year COVID-XX-related impacts quarter of treatment,

to customers, all and COVID-XX for continue waive cost treatment. testing sharing we For

For plans individual our sharing primary specialty in-office telehealth and we care, behavioral continue waive Advantage health. customers, and Medicare visits care, family cost for and and to for

we a proud variety that I the financial to implemented clients, we stakeholders. of providers, Cigna programs. have the of to programs we in continue premium and at way pandemic provided relief of respond for have For support our our am assistance

medical we decline membership, million customers, quarter $XX global ended than X% to a Turning sequentially. with the less

and industry Our that due through and to the employees U.S. clients business commercial of wellbeing book remains are COVID. of commitments resilient our making to of their the health employers continued mix

unfavorable growth development, see we our results end through are and where quarter we to the the also grown Advantage, with in Overall, We of grow with the in continue have Medicare the third also U.S. to our prior XX% in segment. line in membership continue Select of expectations. period Medical the exception segment

COVID-XX earnings business, $XXX ongoing third billion reflecting International adjusted million, Turning were operational claims to to and were markets pretax efficiency, business revenues lower growth. and continued $X.X our quarter adjusted due

Disability segment, quarter Group third were revenues our $X.X billion. For and adjusted Other Operations

due adjusted quarter claims segment $XX for life Third to million, pretax earnings the were pandemic. the reflecting elevated

of dynamic results. our Corporate of a of $XXX lower to For loss the debt. we value due segment, as for all interest stakeholders continue XXXX result strong third focused Overall, of outstanding lower million deliver of expenses execution to a the environment, quarter financial levels our reflects and in

year Now, to outlook XXXX. our full forward looking for

portfolio continued to As year, we balance execution of the strong the businesses. look of expect we across our

although business, these remind and in levels medical We commercial strong outlook from we we business continue COVID-XX with expect utilization now excludes In $XX.XX. to XXXX continued year you our full disenrollment divestiture due of testing impact share year labor disciplined employees underlying now future customers expense And billion the of would I costs market. repurchases remain more and of full and continued disrupted $XXX fourth consolidated of expected direct and Life assumes of to and typical the share quarter. clients, expect we that at our contributions earnings environment. a of consolidated broader we a expect we to close Disability the management are and make also and whole, that investments support of fourth dislocation treatment by in year our as to taken range in the Group driven some in capital. the increase this deployment the to effective to approximately our Overall, adjusted per results $XX.XX financial continue to adjusted fundamentals, expect full will expect revenues in quarter,

flows the flows million to of moving payment was the year. of that cash XXXX, well the and third as of quarter, million of position under cash insurance $XXX and flows million, third health end second delayed the $X the billion. tax $X Act, from for from operations tax CARES permitted our from expect of third quarter the full now operations as $XXX $XXX reflect payments XXXX liquidity for were as than for cash operations the the we approximately greater quarter from billion, and Through outlook, additional Now capital quarter

combination the cash our capital flow Life financial as in flexibility. we generated to Disability quarter, in Through Our amount and and Group $X.X of billion with September deployed the of business, expected and XXth the net is significant billion to repayment proceeds businesses of capitalization our sale of from substantial end third of in debt $X.X and we ratio from XX.X% XXXX. XX.X% debt XX, improved December have

the for stock available end cash and a of million billion $X.X the on at of of shares at quarter, parents year-to-date repurchased $X.X we are We the basis, have billion. third $XX at

parents free to at we the be cash the and return to to transaction, billion to billion below expected available expect Following XX%. of group capitalization deploy $X the to our debt to $X $X ratio is least close billion

balance strong, efficient, returns and remains outlook on our from Our that flexibility, flow orientation cash service-based strong highly benefiting sheet and strategic drives capital. margins

Now to in strength reflect evolving quarter segment. recap, the results focused with Evernorth third execution environment across our momentum and rapidly our dynamic the our particular businesses consolidated

to track financial meet per clients, on per We to earnings EPS remain With that, to positioned and we for are share of customers in and support the well year the $XX.XX of XXXX, call. to adjusted to turn Q&A share portion $XX $XX continuing while per XXXX the expect XXXX. target full the employees, and to on will now we all we adjusted as share of operator of have our targets established such, it deliver over for our $XX.XX

Operator

from Our is open. [Operator Sir, Justin Research. Instructions] line is your you. first question Wolfe Thank Lake with

Justin Lake

kind what in attributed update given thought you by to math $XX somewhere been? close, capital next on this things my morning. that would needs give Good give what billion deployment deploy, or more can that you us Thanks. drivers dividend to the some months, the like ask, on XX to quarter little first, process you us happen to you color you deal what and over of have secondly, fulsome any post billion close on us then, what will states the give might business I and more around development that? the to but want get $X have close maybe months, of XX deal And the a that to you terms can thoughts Thanks. second said negative

Eric Palmer

Thanks, morning. Justin. Good

So first. I reserve will the with start piece development

just about, and utilization look had here had So make as quarter, stepping quarter May, April the associated and claims in significantly June. we of as second we to close remind you, to we the back we to the the with lower back estimates out around second month

Now utilization in little a with back came hindsight, June previously bit the benefit we month faster than estimated. the of of

I’d Justin that So about about should the in the ratio the this have way really recorded we back third have quarter. second loss is you in the quarter think point X been in

loss the that’s So, about in in the development basis on again, development. reserve second results third XXX with associated the this relating think ratio to of headline points the reserve in-year That’s quarter terms quarter.

thesis, business, primarily of about would in As cetera. et the the the line you terms of that think business to I Commercial point

In terms of in the quarter. deal question, the part on for your we close, closing to go to track of that are fourth

David closed approval, transaction the kind of of the now, had getting are handful of out out comments and cusp to will I required put of right terms XX the of release approvals. of -- from take regulatory regulatory deployment XX a in we so couple going that a September, at like. required go have so XX the capital the have now forward-looking We We a let of there. nothing in that weeks and XX we

David Cordani

embedded strategic question your good the portfolio. of question. our in acknowledgement positioning Appreciate of morning. your Justin, And is

your noted, be third there. we producing point from in As of back, significant as significant our a call quarter that you articulated our in were to stepping noted that a group to amount the we going some on cash into in is closure, you we I the just priorities first question, saw Eric’s prepared and are also quarter to and our opportunity fourth Eric we remarks, active our share complete From produce to the stepping noted, XXXX you capital off quarter base. will quarter, that of guidance refresh view, saw flow very pretty -- Specific standpoint. domain alike repurchase not that might need tremendous look and as outlook, to deployable deployment over but as the an opportunity our and expect forward providing as fourth of have that strong to refresh XXXX we

forward So we to look that conversation.

Justin Lake

Great. Thanks.

Operator

Lake. Mr. Thank you for your question,

next question with Taylor JP Our from Gary Morgan. comes

sir. is line open, Your

Gary Taylor

Hi. Good morning.

explicitly $XX First, a to and then slide deck do question, in the in XXXX. $XX the point clarification still to you a

I wanted the affirming in confirm explicitly just are release. prominently So today. featured that just to wasn’t you It real

is premium make there you experience-rated headwinds lower So speak, out to or there sure as XXXX And my into I on has MLR relief, question do to to are Commercial on move been then, utilization want that. your so or skews dynamic? enough because be of business, customer that going it that

Eric Palmer

Hi, Gary. It’s Eric.

think the yes, continue just and there’s That’s time target for that. on had we some track don’t have been to that. first be $XX and for one, ambiguity a on clear, to on we $XX we any to reaffirming So I are be target the

answer again, to think short So, the that question is, I yes.

favorable that business, utilization in utilization, the experience-rated different customers, period. have the we are our and as if levels for there so as of accrue clients On

So, headwinds with and dynamics the lower utilization the of any Many in are future in I here. results would there not being reflected the kind period. think associated already about current

future. about as So the a I would think not headwind in that

Gary Taylor

you. Thank

Operator

Mr. your Thank question, for you Taylor.

comes Our Barclays. next question Steve with Valiquette from

line Your is open.

Andrew Mok

XXXX strategy Mok for the to Hi. wanted as growth MA This you new stepping laid the serving is year, to you morning. targets. stone unveiled year. out Medicare targets on When Good XX% XX% with a growth Advantage revisit last Andrew membership I Steve.

conservative on it about might XXXX growth very in even your will the XXXX? to it you when formal bit looks end membership is growth? targets end attractive a that Thanks. of and the offering have You like we high think now product outperform be high target a that one So track at to are fair year for say

David Cordani

Andrew, morning. for to Thanks question. David. referring the It’s me good

our as objective. out to are XX% we delighted in for laid XXXX back, multiyear stepping starters, So with we that performance and XX% growth

were We in to the the the of XXXX. XXXX addressable also XX% fact systematically we of in to going market from less than addressable market our the expand market that positioning XX% underscored

we terms platform are PPO added new of in in a have we So individual XXXX. systematically and geographies our expanding

So that continues carry to forward.

As in it view XXXX, positioning relates feel good to we our about our our of of the marketplace, offerings -- that. quite

As your that in perform with to XXXX. with Net relative remarks, relative we our continuing that to And are We a XX% We jump I base well Score always of updates the look XX% we step knows senior a strong strong range. to year into some that Promoter to to this, sure forward. and I to providing momentum look have off to noted my of your prepared remain and to star to excited a growth beyond strive committed but rating go appreciate and optimism We at forward best. as XX% XX. great we team forward and XXXX optimism end make as XXXX you

Andrew Mok

thinking quick up. are it. I Got the could potential inorganic Thanks. to have How just senior related a If you platform? follow opportunities about

David Cordani

have to have we continued So of a portfolio priorities. inorganic opportunities, inorganic to specific

The year organic We growth underpinning that this them chassis, walked previously so be that we to is and priorities that standpoint we list. our an through a from historically growth Investor about chassis Day have or U.S. five clear. business seniors remains for at refreshed had and on ago have

end always market the growth over organic additional be will our before, PPO, chassis here and standpoint. new minded as growth with which platform to growth, an expansion our I growth right, opportunistic But open as So individual inorganic market into that referenced employer, by well relative we time entry, aided chassis from is opportunities. our

first future. opportunistic it’s So and in organic organic on appropriate as an the

Andrew Mok

for it. the color. Got Thanks

Operator

Thank Valiquette. A.J. question your Rice [Operator Credit Suisse. question, next is Our Instructions] with you Mr. for from

line Your is sir. open,

A.J. Rice

entity. just does move just everybody. the since terms the us I about, own little and about just where begin about the separate lines ask bit entity tuck-in as Maybe pursue, of bit you might you the of have of call in Evernorth established a incremental are going its think, it give into a identification. business where Evernorth have first us to decision the Hi, capabilities acquisitions, business? distinct behind a to business is you more and say Maybe brand going with your What this give that Thanks. separate is thinking company quarterly your done service that that thinking that little

David Cordani

A.J., good It’s morning. David.

So specifically relative to we of have to service strategy. acceleration I in Evernorth, a as an quite that of excited reinforcement noted, launched further We it health our are view September. as

of tuck-in health time needs, that. have portfolio We well we embracing business services, delivery evolving and performance the strength, and from is, expanding and solutions services care Evernorth, a we large expand to have our needs, we see are as from large well or state data lastly, talked further care as and And portfolio Within from home care and Specific only it systems also we management both a to portfolio. health resources have federal some healthcare-integrated as go opportunity complex reinforces think performing bring we capabilities to we opportunity providers cetera. virtual a I’d for around forward. for healthcare forward embracing risks who employer pharmacy management well the growth organic programs coordination as you entity based to that an a one, solutions, supporting standpoint. quite as based that it’s growing our an offer portfolio -- to platform an we our or business building about for marketplace, of of value to technology, and today, illustratively taking capabilities, needs, way that service comment, plan et that to governmental services expansion the your a And ask performance solutions not benefit to individuals see as from this solutions standpoint, reinforcement as the needs, services but continue analytics attractive healthcare we that agency have portfolio have a of around were standpoint, dedication we

building organically some readily an from we are will those be and of capabilities standpoint. today opportunistic We inorganic

portfolio, our and very expand partner an today of continue service broad choice just a of of acceleration So those orientation for of we benefit serve. resources, that to the our dedication reinforcing will of can portfolio services

A.J. Rice

a lot. Thanks Okay.

Operator

your Rice. question, Mr. you Thank for

Our Josh Research. Nephron comes with next question from Raskin

is sir. line open, Your

Josh Raskin

that’s some sort how the what Good the of you are year and feedback guys going morning. market Can are kind us as going past medical the of you and with stakes, to Express case, XXXX. offering, PBM are at that integrated or you into Scripts further key Are the Thanks. with? integration if just employers table and integration give a that’s the looking differentiators on

David Cordani

Josh, good morning. It’s David.

And a have management long integrating of off with the portfolio a of backdrop, deep you Cigna continued and offerings PBM, of employers, client relative the to as terms I we we proposition. flexibility some and those first, the services would to continues. but history the conviction value also dimension bring toward integrated more then larger So, a from that that strengthen further us proposition standpoint. for in solution can it, of care Cigna within medical from health, combination that behavioral know, traction had market helps relative that offerings bringing continues, and as furthering integrated with systemic that The that affordability say design middle

with say, services or we a and of of that, suite expand the about to solution broader then point show from think as going it by further around we forward. And pharmacy specialty, either results specific that see addition PBM or services to behavior PBM, that. the opportunity the pharmacy underlying health In Evernorth, a coordinating, services our through strength

the to for as looking coordinated together the around the we those say, and and we the solution strong some many oriented and and that with and core carte momentum for Evernorth pharmacy proposition clinical bringing, strength question, buyer increasingly of or and brand, Cigna were around our that benefits by coordinate an talked your either continues, a brand corporate combined leverage really but some about orient either that, well-positioned to are behavioral integrated brand, outcomes deliver the are delivering to continues, additional larger services employer/buyers orientation. corporation still la we value point a So around Cigna within buyers

Josh Raskin

Thanks.

Operator

question, your for you Mr. Raskin. Thank

Kevin question next Fischbeck Our with of Bank America. from is

open, line is sir. Your

Kevin Fischbeck

few quarter, part about of furloughs Thanks. ask to better part you mentioned also segments Great. are I like targeting. you will see your the quarters But in your all because It recession the might you over are this membership trends. these your have even guess, the customer of you at resilient customer Hi. or during attrition with about the in the unemployment membership In decline and that thoughts of assuming the that I that things in accelerate are size that might levels? getting at because next commercial be how sounds future. wanted changed

David Cordani

So, good David. It’s morning. Kevin,

pause commercial we I from just a second want the facing now that into to making do get is see what conversation, we tremendous disruptive as times contribution First, for are right recognize and a COVID. in employers these

whether employees those need their We and And sizes to to are to and testing layoffs they relative working or innovate family support work, when services, doing members, and coverages everything the additional coordination. minimize their employers through either them of they are transpire, tirelessly to furloughs are costs. expanded having all seeing stretch, treatment possible do to

So hard of important the I power there and corporations now support think pause all recognize to and do of sizes shapes working that and to right system it’s really individuals.

noted, pleased environment, disruptive a membership, as in Eric our with are of to big relates the we picture it performance. As

by Our programs of with us highly portfolio well-positioned aligned sub-segment tends transparency be and to industry our has employers. our

transparent our of clients and have and quite quarter, that have spending to employer some the place the we above $X that environment otherwise For is additional steps. have our projected funding helpful, would around the cash takes third they beyond of taken continuity less billion about given flow example, that because have than through mechanisms

As we know environment. look it’s forward, we a disruptive

We XXXX. will into about continue to expect as this look the year talk residual customer and factored detail. into right part we we at XXXX our now the see employer when of disruption in environment throughout we that That’s outlook

relative insight to more you give to that. try will we quarter, Next

net-net, some known with end new well strategic is go are approximately to expecting, see losses, growth, the calendar some have of then positive with but some our we retention Select would our year’s from continued number beginning range. course continue quite well to growth throughout within We commercial all membership, continue expect pressure, as year, segment, traction as And to our into this stable the the XXXX selling enrollment, we as to this we retention with the while of to disenrollment XXXX. relative outlook as

We expect growth see some slight to going forward.

many So, center. are commercial with front very results are all first with in the clients all, putting that their were in fortunate able are be employees partnered and to to environment, we so a and we disruptive highly deliver pleased

Kevin Fischbeck

Okay. Thanks.

Operator

question, Thank you Fischbeck. your for Mr.

Our is Citi. from Ralph next question with Giacobbe

sir. open, line Your is

Ralph Giacobbe

I Great. And the the retail Prime or on gone the how I we perhaps but more bit was option a a whether either what And cost little works more impact? have you morning. talk about the opportunity on side? XXXX not how for of that specialty onboarding guess Thanks. to and the just impact Good consider could in hoping has or certain each then if the options of have it’s Thanks. blues? XXXX and

David Cordani

Good morning, Ralph.

noted foremost, relative to to It’s as call as that I be choice. to of day Prime, try prepared and we it first a earn to partner in So, the have every an undisputed and guides the underlying work we right we But products, partner services that, It we value. have seek deliver imperative. and alignment. and to have mutual strategic orientation to need to also actions to the programs to our remarks,

a in as in further us We year the stood The we performance right, basis. and expansion April up with performing noted, our we We are configuration this to expansive well. Prime serve opportunity first the Evernorth around of early Prime. the services calendar and dedication it’s too that and and more with to able earned to relative be established that pleased had

throughout growth will We that continue see systematically XXXX.

noted I plans As choices. prepared the my have in remarks,

many framework. year. investments more year of that well-positioned that XXXX objectives little next our tremendous get in into this the, able are as make you achieve noted But guidance we this and the for of the making. -- XXXX making value to happen excited give Prime around That’s together we But an tremendous our of to as outlook that January bit just are to are benefit ongoing we for We expand are in our factored from investments to a But individuals quarter, choice-based underpinning are this beneficial there’s create refreshed for growth and able those detailed we a we the that. proposition to There and terms proposition ongoing will we are the expansion we of be be expand There’s able we fourth a are quarter in in we color. is investments further some objective goals starting that to a of we for Accredo Xst the example, value and mutually where tremendous plans. Eric for will as relationship, to will try serve. see value

Ralph Giacobbe

Okay. you. Thank

Operator

Giacobbe. your Thank Mr. you question, for

Market. Our next question is Matthew BMO from with Borsch Capital

Your line is open, sir.

Matthew Borsch

cost trend have I the put to that providers into Yes. to year? you the level the but do we direct Are to particularly as book commercial and at hoping to in too above seeing just you of actions and the are about trying aside of COVID. and trend patients at just trend, or and I your recovery next taken grant expect and where now was go that you trend it utilization that standpoint am medical if ask plus the get relief Medicare below we understand of from look to you

Eric Palmer

morning. Good Eric. it’s Matt,

touched components. to the little you So, with about but COVID pieces, would think be would to respect bit prepared it the said I have what I kind utilization remarks, unpack on of aside, being on putting slightly normal. have would below my we a component

remember, of XX%-ish and that you treatment additional COVID top or and actions of of and customers levels reduce testing impact the it barriers of second third add that quarter, When normal access it for you might year of in loss that the quarter elevated a call the to normal. the have the you on of what we that loss an have care, call we to cost a expectation the bit terms to the second utilization. our So kind for would this relative ratio. of that little reduce normal ratio above might for otherwise together sharing And to on puts had the taken you top half set all in ensure be

it when you note blocks. together, other are those big vary does is, pieces put really So building that thing The I only geography. those by

I up and all in together up COVID geographies with the have again, described. it in play of we of down such. just things kind as and and it roll out be So when different would had But, that move what aggregate, consistent you

Matthew Borsch

you. it. Got Thank

Operator

for Borsch. you Thank question, Mr. your

Windley with Dave from is question next Our Jefferies.

Mr. to with are unable question. your open, Mr. Windley, line hear we Your mute? are is Windley, sir. you you on

next Scott will to We on move Fidel who with the is question, Stephens.

line Your is open, sir.

Scott Fidel

Thanks. Hi. Okay. Good morning.

admin specific cost mentioned buckets and about XXXX? throw yet if XXXX not, just savings a maybe or target savings administrative if established I being bit on, identify -- for key Thanks. interested of see just or just can of have can the as a more some for opportunity talk that you tailwinds you if one interested Just you the for know had of opportunities in savings. David And some

Eric Palmer

Yeah. Eric. it’s Scott, Good morning.

particular not would program. any I out call initiative So or

mean, of I about affordability much in overall. efficiency, drive improving our for the just opportunity continued technology, things think, program. leveraging the being create think cetera, of I I like any our processes about throughout more improving part the it’s automation, here to of ongoing services really as again, versus think culture all continuing particular of et just the efficiencies different the organization. But, us

Scott Fidel

Okay. Thanks.

Operator

your Thank Mr. you for question, Fidel.

Our from next with question Raymond Ransom John is James.

sir. open, is line Your

John Ransom

manufacturer digit-trends Hey. continues discounts CPI? primary data. by and trend goal you are do still your the mid Evernorth Thanks. savings vulnerable Are continue to there’s wholesale new the you models to if industry And if or do all then, one, that kind on and triple promise against revolt market integrating as you do materiality think and that sustain of Good CPI care XXXB is doctors these for medical morning. Number pharmacies? the to at secondly, that how rise double the you a would. just can at think seeing of A of an XX% single you the XX%, committed trend contract two-part event about pharma unlikely the think question, we if happens XX%, acceleration

David Cordani

It’s David.

order. Let me take reverse it in

societal we theoretical orientation established had, of was But if it to total perfect, was but standpoint from level that find need needs think, not or around was question to market otherwise, that sustainability costs are objective, a from create increasing of a of X caused not is, and possible or forward whatever goal and basket sustainability, I an when we it it better And forth we standpoint. by it are have step to So a delivered businesses a proud sustainability. CPI way otherwise. way that goods the tell of conversation approximate Said that put fact the we to the trend by space to be X, year cost year could and that apples-to-apples in trend, a symbol the because symbol in, that it’s of pharmacy that best it medical whether lowest a out. the or anybody was lowest our as X%, the

is This But to COVID toward drive continue year, trend. continuation So unique disrupting we in the knows, a is critical. that mission everybody to relative of terms as that.

of or see to better step term, clients disruptive dimension cetera, from and models groups we heavy and have excellence provider than improvements that are many, standpoint, that to et drive many your value-based question, today et consumer leverage CPI of incentive function or leverage benefiting innovative we innovative highly trend CPI who and cetera. the center care on your of are utilization of context from pre-COVID the within Second engagement, well alignment,

our to driven. paying standpoint. the disruption, continue is, no noted or remarks, prepared see to afford systems alike at we relative society as embrace, you used in from the that they word need that, here The word for open-framed make my care being I’d levels So, can’t and or continue delivery relentless disruptors last We because will can afford drive orientation I innovation. if use I are the you that us innovators partner to has will, point be the

to here. value we remain I to more here. optimal you driving highlighting committed follow extremely So, and it appreciate

affordability I specific and is, and hear relates it and many with first XXXB of, was There say, bunch delivery system another The it’s way providing whereby theoreticals point example mind. purpose interesting As we sustained XXXB time hypotheticals hospitals an revenue first there’s support in in self have governmental seen your a to work. others that. are system intent broadly make strained of and It’s pressing massive which your I’d due to a point, of from ramifications, a more to designed conversation, infrastructures within for infrastructures need in are our are intervention causing ways past the our space haven’t them that and delivery that in player that COVID to some standpoint. though like

will to So, evolve it’s an it most theoretical service programs our interesting portfolio with most conversation, time to unlike have is but evolve broader positioned likely that and it.

John Ransom

much. so Thanks

David Cordani

Thank you.

Operator

Jones Thank Sachs. you for your comes question, Robert Mr. Ransom. next Goldman from with question And our

is line open, sir. Your

Robert Jones

and the if on carve-outs Evernorth. touched quarter, guess OpEx or it something just desire on question to a you on some the for follow-up you curious are am I a clarifications just just step pharmacy then point actually first, couple these Josh’s seeing less meaningful or offering. market up discussion Medical on a more I just less PBM And Thanks of in still fairly mean, with I of Integrated Great. the customers? see today your Evernorth the on items. in did is question.

potentially or Evernorth level of kind is think a that is year spend the in business? probably or we permanent nature curious, one-time more Just as this next versus about year of this more

David Cordani

question relative is, We will client ask Rob. at time. a buyer will of Good C first in or more of wanting I a terms answer don’t The less address your no. of. simple I change David. to question. the Eric to see second behavior take and It’s one morning, It’s

a work right that configuration We much have very and to a trying find funding benefits orientation of clients. mechanisms consultative of the for

is integrated guarantee whether segment Select end. an ASO an period, our stop, or to that, an It’s it’s within the on a platform designed platform. Now, be offering, full cost offering, integrated

client would think and to is a an in a about point accounts, or relative want Eric? or that value Evernorth see step integrated what a space deliver that within you of and But buying whether if you care want services, to from you services we fully as with commercial flows. best-in-class a specialty evolving you there’s point of And be being both of pharmacy they it value et it this wants, integrated, employer I important the get off looking standpoint, ebbs As change. to offering, into or different that, upmarket say solution, are middle C get that. I coordination say coordination it solutions increasingly whether Cigna on PBM that and behaviors be entity, management wouldn’t health, additional well-positioned the national to extremely and market best-in-class move some are deliver message together they behavior to services, function a extremely well-positioned another or pharmacy that. come services value want some as buyers think along cetera, case standalone want, I here

Eric Palmer

Yeah.

rebuilding bit are other talked the in couple caused the One, in might a it well. the particular, couple we level, the of this On to invest continue in of the and spend there’s here. acquisition, do you amortization. see capabilities in a kind G&A of close impacts as macro most a that ratio, the At of continue call the There remember, after things that to in additional of just out just you as building past, and G&A. business I we

gets built So and synergies additional find is -- expense we continuing that over up Offsetting work -- find that to efficiencies. then amortization acquired reset time. into us assets you and the rebuild on have to the to over the that have

be into we build forward. to But go continue buckets spend So, quarter. the looking be biggest as that there to capabilities ratio that play again, and not it’s given we those would additional in any will

Robert Jones

you. Thank Great.

Operator

Thank Jones. your Mr. question, for you

comes from Cowen. Charles Our next Rhyee question with

is Lance Rhyee, it’s Wilkes Are our Mr. Bernstein. question, open, your on line from you sir. Moving to Your with is open. line on next mute?

open, is sir. line Your

Lance Wilkes

Good morning. Yeah.

clarify of How opportunity relationships subsequent do Just the you relationships far kind frame direct or if penetration penetration could improve had could like that that contribution a that decreased question us And the they improve on the into how specialty carved mentioned does opportunity? as you get other as prepared so maybe the and what Prime remarks, you could what’s maybe Therapeutics well? less, Prime help Thanks. then further blues? really with to existing penetration clarification, relationship? maybe as you just out as meant as sell-through And in the just if then their a

David Cordani

I question. your of to good will take first part your ask I Lance, second the question. part David. will It’s of Eric morning. the take

pharmacy We first were we service I fortunate to began choice at partner think this as we our Evernorth commitment positioned earlier Prime are with every working to -- frame the to is, be April first an quite year, the specialty each It relative to the part to those mutually and they That and of to our be will set them Prime opportunity your expand selected broadly was question choose well. servicing the on the with participants have with we to to and a serve and clients offerings together. earn grow have right to us and alike. services need to reinforced and those as in so ability up grow allows based opportunity foremost, day. a us

customers otherwise, team off therefore, grow, point, to the stop. proposition more and to to members the and to on to Prime Your focused us -- the their and member grows to supporting our our traction model as commitment relative the full plans us to do us should continue a Prime platform. It allow grow basis Prime Prime to allow your value their relationship, and of the the for portfolio to designed the more it existing and continue it grow to businesses, the business and have go-forward is should should grow point sell-through offered has strengthening to That is team as value is allow on of sell-through of their continue for representation of so.

high well for we performing have mail will as specialty for now portfolio, benefit. So order because a operation well-performing But love, very our strong we our Eric? really stay as pharmacy tuned able their that leverage we and today be more. services to positioning the

Eric Palmer

Yeah.

that the we around On specialty Lance, contributions benefits the to capabilities have the here to overall. made comments portfolio I contribution, of specialty specialty refers

But of comes right? third take a the would in for seen particular. as mental call go-to-market quarter anxiety management, XXXX this some of So a cetera. these things out, management, the health, been performing et above prior disease little that a significant cetera, in couple here, the at of large, you a just seen our lower bit terms example, care we an toll a a contributions. items core through we behavioral behavioral, refer and in and items did et the This one. I’d as high our as Utilization the And cetera, you bit well. time there impact lower two, approach had expectation stresses business have as So then, And part one, like our volume think increases And business. have we to et quarter. volumes, from as on health specialty has know, costs contribution products in the we be in about that nation in you of as of those

Lance Wilkes

Okay. Great. Thanks.

Operator

Thank you question, your Wilkes. Mr. for

is question next Our with Piper from Sandler. Sarah James

open, is line ma’am. Your

Sarah James

July I about are of talked then related of not as was at XQ claims we you back basis of seeing MLR in June. know the at you. XX, time about but transcript you Thank quarter today XXX a being slowdown and to second talking that the I looking points receipt

DCP for of that? greater? factor as comes or a claims assumptions in there of completion like think XX in how April result your impact as slowdown claims result maybe And for days receipt or what a that, I So that reserves how May. there’s a you wondering, any of it June reported sounds am and percent was XQ did or in wasn’t about change in on you out there you Thanks.

Eric Palmer

Hi, Sarah. Eric. It’s

memory, speed submission well a haven’t would in lines on last we I anything good perspective. question say, remember the from and change as seen on your that So front, claims of I a or the from those -- call still along

so in really much remarks questions not recent other yet of the in of of lines. those the my of response been we from that the more the anything extrapolating or off Now received one month along estimation kind that, June, and our month based estimate prepared noted I activity, claims as of have most to

that ago. a think else of terms pretty impact. we as of I and But equal, So, as noted, the than now month did what would bit exited higher all June a we quarter have in isolated the of

now degree of speed that levels our quite we third payable third XXXX of mean, consistency looked and consistent our along is normal, or development well, things in end metric of levels actually not prior As at et in of looked the even metric the where we if lines. in quarter quarters at processing, I you compared utilization, entail those the to experience have at metric, cetera. terms see perfect, with the emerging of of claims the you good a of for if And June day experience the seem the August, pretty basically October from sit here terms at return of look July, September

and a of overall the at have speed we et So, cetera. level, estimation claims utilization, estimates the right got the year, macro and such that of quite comfortable and

Sarah James

I you guess that seeing now through just to whatever factor are you more June MLR. be you when did specific, MLR, XQ that assume continued in XQ

development, other hold whether and by you and ends you consistent being month? up swings though the way a but that slowdown placed that’s with so positive conservatism So or did

Eric Palmer

Yeah.

we So yeah. placed -- through

by placed month. the through assumptions we So consistently

benefit back normal. of ago had of the June the some with to bit estimated So, month a further, again, about closer utilization just to it of normal to a being comments made much levels quarter unpack closer was June, I hindsight, that we

having about the each that kind from we of those way zero closer types of for utilization think of assumptions as of a to in through terms previously, been month the and then. single-digit level So, estimates variation since the placed all of our

think to month So, June. we impact of the again, would June isolated that was the

Operator

James. Ms. question, your for you Thank

with Our SVB next Leerink. is question Stephen from Tanal

line open. is Your

Stephen Tanal

Thanks David, in the about enrollment comments the selling the back for maybe for point commercial that into guess, question. your Good and follow-up clarify to season morning, in to market guys. accounts. hope I I XXXX, tie the group

that? maybe the relates business. resonating pricing down as be in there, of to middle seeing Are into with are also offset how buy sense your you that employers this but could comment you heard innovation is enrollment a you you down XXXX, elaborate it I accounts think by be us employers could actions Select give wondering what is response to mentioned XX%, for on benefit that would as I growth. side XX%, helpful? market insured in group to might going and national clarify well kind if wanted if I the just in And taking the pandemic

David Cordani

Good morning.

take me reverse in order. it Let

back if general employer, and a the to specific few employer unique step actions, So of talk trends. to about each but obviously, we

and that foremost, buyers the and continue taking improvement value we shapes reinforce our today, light to deflection that. prepared First remain And all the are the and transcends results remarks we strong further quite in and of our relative for of relative press from affordability to actions and and affordability both standpoint to trend improved dialogue value sizes. through our

reaching. Beyond are that, employers both

waive to those determines, telehealth expanded at employers standpoint, fulfillment employer self-funded they a example are services Two, around from are service that of testing, responsibility they cost from expand standpoint? Many that services going individuals or virtual around to one. expanding services. no for for going treatment cost the to So little have

pressing, recognize around body, level. challenges to up Eric before the oriented as Third, that as stepped another behavioral been standpoint, have that articulated and from to ramping mind a societal threshold we had been have

are beyond on reaching for stress to wellbeing standpoint. core health with to resiliency, additional, mental it, around with help call services health and around services deal that around anxiety, will we or of dealing So, loneliness the identifying behavior what from

whole for bit make so somebody seeing of from indicated will season, are we have decisions a benefit step at little direction of on provide environment. to medical there furlough to decide is quarter detail a to call. those customer get employers fourth we them look I press So benefits appropriate an Back the a selling I when lay try they to from try the delivery cetera, relative to we they before punch the a care up of comments overall we variety to the must continuity commercial bit, themselves through into press off it of the actions standpoint, et the the little but I innovation individuals. and to as standpoint, What go versus

of continues strong, in and are from dislocations that the standpoint. well First portfolio year overall and given through this foremost, results our happening to our three-quarters the environment perform

will to throughout the year and Second, we will that the that expect today, here that end disenrollment this would membership I of as year. sit expect we The year course medical with have indicated see medical or accounts. pressure same on some be There’s January the continued membership we this with about There’s membership we lost will X medical minus. that end will always takes and plus puts there. the

the sells stable that that The from with outlook month year. continue. every and In month that that important estimation the is is that is that accounts is will month. the of strong. this most be segment about standpoint net Select some heard segment. January, of throughout There’s membership what we the we and our through will for one part, will month Although, retention in growth some you Every that see come course quite always enrollment the of all our

we relative growth will along to that. come So continued see contributions

We part continue have are visibility in expecting ultimately, a relative half at pressure and of the mid of first additional minimum throughout the growth in year, the to XXXX. some the then that plus disenrollment will XXXX we

buying you environment seeing both I are terms are outlook. to seeing well kind that shape as of color relative what So our what of as helps in the we we hope

Stephen Tanal

Helpful. Thanks.

Operator

your Mr. Thank you Tanal. question, for

Bank. George with Deutsche Hill from is question next Our

Your line is open, Mr. Hill.

George Hill

seen a the year. Yeah. bit and these which come of last we rapid given that growth this the follow kind Good over Steve’s have morning, question, enabled is telemedicine solutions of up on to guys. is And digitally of all actually a market

do talk and we So, think demand insurance specialty the are this the the product? solution season about from how And the they contributors digital segment? to could guess meaningful being for selling formulary Evernorth Embarc away far you I

David Cordani

David. morning. Good It’s

of the step the in about comment. we think examples Embarc, there’s first two embedded but and different as back to digital formulary to part So your use

As to probably the re-envisioning affordable different to a specific standpoint. more highly look done, adoption can in of way. and what what our the we our we environment Not but it’s additional the COVID personalized take technology we a as way in in from years has industry safely services at jumped a industry, multiple home, relative that unique telehealth kind leveraging way, and be as take of both fulfilled to

prospective years about fact from think bit a more are proud one comprehensive So corporation, bullet. where and for there’s not the are to of been innovation body trend dedicated have our would we reverse first drumbeat had offerings we we we able not that we over and so clients through just affordability that we innovations relationships, I we resources and existing we there not an to and have new in the itself, digital or through infrastructure tremendous both a adoption of to personalization and individuals the have launch from as to launch way will of able serve the there. Embarc, organic Specific some taking bring through framework formulary, the any benefit consistent lens we market standpoint, but combined and more silver really Evernorth new that as partner standpoint see, even for care, of a and have broadly importantly, the growth, Rather, two issues, that within you that ask portfolio a alike. to our a telehealth through have market as a both variety a a we call, will value little initiatives virtual see what that are

the good changing more digital standpoint simplified and to to had game that marketplace. a us little trying to and proposition, affordable, is super unsolvable more to societies it bit to it client-by-client should opportunities, statement turn from trying that changing akin formulary very but receptivity. it’s us said So, to indicative Embarc relative Embarc, expect the into drugs the you offering a predictable different offerings also that high specialty bring the a has problem narrative, is of take is of where value a cost

to see revenue of conviction innovation and positive those indications to relative conviction delivery, our we chassis. also contributors, and to growth as So relative contributing our value it’s

Operator

your Thank you for question.

with is is Our Goldwasser open. your from Morgan Ma’am, question next Stanley. line Ricky

Ricky Goldwasser

quarter highlighted products? When Yeah. think positioning Hi. Express quarter, biosimilars about the driver of of seen just benefit? have the And as impact outsized growth about Good you think chain morning. do in Biosimilars versus this was how you a supply and formularies any you the innovator some costs. within biosimilars on also

Eric Palmer

start. will it’s Ricky, Eric. Yeah. I

So, any in impact. note really I terms of particular out in calling quarter, anything wouldn’t the

I think is future. here the potential in meaningful the

therapies more notable those market quarter third but impact. as excited about wouldn’t in the and future anything and opportunity lines, terms quite the treatments to related of out are things I along call So there the in

David Cordani

picking instead Ricky, opportunity. up up on statements his the Eric’s an picking on with I point, agree

with ourselves on honest other only are appropriate physicians lags, no approval as then patient corporation supply from corporation we and decisions orientation. standpoint, acumen, excited supply and and it are well. pharmacy it but infrastructure if countries care As adoption think ensure time the rate, a an within to And but chain quite as to both deep in combined the great reach to arena, because additional underlying from and not that chain supply have positions and the we are value dimension, is practicing with broad value to the made have a one medical you based tremendous well biosimilar about where chain, in get infrastructure, relative value opportunity. grounded grounded the well-positioned now U.S., performing we dimension, relationships we clinical to means the us get And rate there. with we clinical a And to need a fallout biosimilars that through it’s to combined represents limited the pharmaceutical and affordability societal need biosimilar a have by U.S. on deep we the deliver are we deep political the at some relationships it in the while

Operator

your question, Ms. for Goldwasser. you Thank

Our is Rhyee Cowen. with last question from Charles

is sir. open, line Your

Charles Rhyee

Hi. Can you guys hear me?

David Cordani

We Yes. can.

Charles Rhyee

Great. Okay.

Okay. Thanks. in me just Thanks a for question two-part squeezing here. here. And maybe

should Accredo a how to -- can brand potential talk I com of if the that, how I meeting is related would first -- you First, more you into work Evernorth as coming, particularly had both COVID big because we distribute ad very then, on as very reimbursement, do know -- distribution drug. fall the think you Embarc maybe standpoint Evernorth that of understand well? I positive what the cost something new program how from Eric, and company about expect their that happen impacting about the to the walk or this maybe maybe positive at through government as a Alzheimer’s side? we from talk bought it, sort to for about And business. Thanks. it’s Again, and sort yesterday of and pricing point you that a secondly, you think maybe of And think, the could, Is Biogen vaccine a Dave, with to standpoint? the would the something impacts the we how that tranche early -- could vaccine. has understand I How revenue guess, understand vaccines, of kind this I

David Cordani

morning. Good It’s David.

structure, generation be pricing, dimensions Evernorth opportunity. in specific the manifest unique based It themselves, But through step service et we sure. So, know. there multiple configuration, on evolve that the the presents within for in that. as first facilitated the back will cetera, opportunity. revenue vaccine the this don’t It’s will will vaccines that stepping on vaccine, point, there’s that is be viewing a very a your into The current reimbursement you

arms dialogue to to relative Our prioritized and relative political in in from look as society continuity that initiative individuals, cetera. starting society be of their will embedded relative support the team leadership service et in well medical that how is service be national responders, we vaccines provider to get And this to high-risk are through is the large a to transpire, and our more with to that. of needs around one to including to dose, kind we highly the these distribution, first that complexity along forward configured comes that than professionals

relative taking as we well what estimates relative the that XXXX would be is vaccines team to through prudent of the lens. outlook cost think Our to

The we continue oriented a we per to and which think, be from of innovation the for quite forward innovation capability from that also would pharmaceutically, the standpoint. pharmaceutically the your the drug, specialty as an evolving over opportunities button will good as societal market time. heavily position example and hit And where point, basis innovation healthcare recognize majority another of leading relates the Accredo environment it’s around which transpire exciting that to drug, having innovation clinical complex standpoint, transpire on is Hence we right? ongoing globally is and will extremely the I expand suggest to and pause program, well pharmacy potentially accelerated that a presents Alzheimer’s present and to Alzheimer As is additional quite moment would vast in Embarc chapter extrapolate does is costly. last

to and very future the be to good I the portfolio to Ricky create but Alzheimer just way, Evernorth it’s a the So for going store highly able capabilities think is to drugs, relative here. serve other example support what you really to in that, relative questioned be whether questioned and and costly also to or complex life-changing who previously the exciting able society well-positioned drug of biosimilars concrete great has our value having and

Operator

to now will the David Mr. Rhyee. for turn over Mr. you Cordani Thank conference for I remarks. your question, closing

David Cordani

you. Thank

this world, foremost I’d are here, throughout more around again up have around globe, the XX,XXX wrap serve tirelessly in the we and to to Cigna’s we clients. who and like acknowledge customers, great as able with and worked pandemic first colleagues of than patients empathy So support those

to actions. seek health, other been all along to important the sustained Scripts continues we Cigna of to perspective, quarter and serve leverage and guide From improve some Evernorth, for platforms, new remain mission our solutions integration of growth of a the Our this capabilities to company track complete of chapter those results our mind and Specific more and of once drive strong tackle flexible with an has our calendar exciting wellbeing never to issues we at and we and Cigna to represents society’s peace it Express by on of toughest year. again healthcare suite deliver the broad end results create this growth. innovative the to

times. We Hope are call. XXXX Thanks. you safe thank target well outlook deliver to per these very With we our our for EPS strong share. well-positioned remains of everybody $XX also as per $XX healthy joining revenue in to as EPS and that, and for XXXX, share trying

Operator

recording Ladies XXXX will available will Cigna’s and quarter Cigna A shortly. Investor Relations following conference respond available this business to call. of concludes gentlemen, to third this days results be review. this be for additional XX questions

or may Thank conference dialing for is you XXXX-XXX-XXXX replay. XXX-XXX-XXXX. You by participating. the for recorded There no required this access passcode

We will now disconnect.

Cigna (CI) 5 Nov 202020 Q3 Earnings call transcript