exhibit99-1.htm

Forward-Looking Statements

Forward-looking Statements

Certain of the statements made today and listed within the following presentation slides are forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements regarding the intent, belief or current expectations regarding the matters
discussed in this presentation. Such forward-looking statements are based on management’s current expectations and involve known and unknown risks, uncertainties,
contingencies and other factors that could cause results, performance or achievements to differ materially from those stated. The most significant of these risks and uncertainties
are described in the Company’s Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission. 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 the date this presentation was originally given. 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.

Reconciliation to GAAP

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 in the Investor Relations section of our Web site at
http://ir.omnicare.com. Additionally, all amounts are presented on a continuing operations basis, unless otherwise stated.

Important Additional Information

On September 7, 2011, Philadelphia Acquisition Sub, Inc. ("Purchaser"), a wholly owned subsidiary of Omnicare, Inc. ("Omnicare"), commenced a tender offer to purchase all
issued and outstanding shares of common stock, par value $0.01 per share (together with the associated preferred share purchase rights, the "Shares") of PharMerica Corporation
("PharMerica") at a price of $15.00 per Share, net to the seller in cash, without interest and subject to any required withholding of taxes, upon the terms and subject to the
conditions set forth in the Offer to Purchase and in the related Letter of Transmittal (which, together with any amendments or supplements thereto, constitute the "Offer"). The
Offer is scheduled to expire at 5:00 p.m., New York City time, on January 20, 2012, unless extended. If the Offer is extended, Omnicare will issue a press release announcing the
extension no later than 9:00 a.m., New York City time, on the next business day following the date the Offer was scheduled to expire. The Offer is conditioned on, among other
things, there being validly tendered and not withdrawn at least a majority of the total number of Shares outstanding on a fully diluted basis, the board of directors of PharMerica
redeeming or invalidating its "poison pill" stockholder rights plan, receipt of regulatory approvals and other customary closing conditions as described in the Offer to Purchase. The
Offer is not subject to any financing contingencies.

This communication does not constitute an offer to buy or solicitation of an offer to sell any securities. The Offer is being made pursuant to a tender offer statement on Schedule
TO (including the Offer to Purchase, Letter of Transmittal and other related tender offer materials) that was filed on September 7, 2011 by Omnicare and Purchaser with the SEC.
These materials, as they may be amended from time to time, contain important information, including the terms and conditions of the Offer, that should be read carefully before any
decision is made with respect to the Offer. Investors and security holders of PharMerica are able to obtain free copies of these documents and other documents filed with the SEC
by Omnicare through the web site maintained by the SEC at http://www.sec.gov or by directing a request to the Corporate Secretary of Omnicare, Inc., 100 East RiverCenter
Boulevard, Suite 1600, Covington, Kentucky 41011. Free copies of any such documents can also be obtained by directing a request to Omnicare's information agent, D.F. King &
Co., Inc., by phone at (212) 269-5550 or toll-free at (800) 769-7666 or by email at info@dfking.com.

John Figueroa

Chief Executive Officer

Management Presenters

John Workman

Jeff Stamps

Nitin Sahney

President and Chief Financial
Officer

Executive Vice President and
President LTC Operations

Executive Vice President and
President Specialty Care Group

John Figueroa

Chief Executive Officer

Today’s Objectives

• Strategic overview

• Financial review

• Greater visibility

– Long-Term Care

– Specialty Care Group

• Additional metrics for greater transparency

• Future growth opportunities

• Question & Answer session

Creating Value

Cash Flow
Generation

Specialty Care
Group

Omnicare’s Fundamental Objective
Focused on Growth and Creating Value

Value

Creation

30-Year Evolution

Omnicare’s 30-Year Evolution
A Different Company Today

Omnicare today is a company that spans the healthcare continuum, providing
services designed to improve outcomes at the lowest possible cost.

Acute Care
Facilities/Hospitals

Omnicare’s 30-Year Evolution
A Different Company Today

Omnicare today is a company that spans the healthcare continuum, providing
services designed to improve outcomes at the lowest possible cost.

Skilled Nursing
Facilities

Patients

Other Institutional
Settings

Caregivers

Physicians

Nurses

Manufacturers

Omnicare’s 30-Year Evolution
Timeline of Events

1988

First investment in
Long Term Care

Omnicare sells CRO
business, announces
tender offer for
PharMerica

2005

Omnicare introduces
Geriatric Pharmaceutical
Care Guidelines®

1989

Omnicare sells
Hospital business

2010

Omnicare begins cultural
and strategic repositioning

2003

Omnicare named to the
FORTUNE 500®

2000

Implementation of PPS
requires Omnicare to
consolidate operations

1992

Omnicare sells Veratex
Group to focus on LTC

1981

Omnicare goes public
as Hospital Pharmacy
Management Business

2012-2015

Focus on LTC organic
growth and efficiency,
SCG growth

Omnicare’s 30-Year Evolution
Sizing Up the Business

More transparency into Specialty Care Group to be provided in 4Q11

Omnicare’s 30-Year Evolution
Our Employees are Foundational to Our Success

• Clinical expertise provides for differentiated offering

• Localized services require customer-focused teams

• Investments made to better align employee interests

• Launch of core values to continue cultural transformation

– Excellence

– Integrity

– Service

– Compassion

Industry Growth Dynamics

Demographic Trends
Aging Population Shaping US Healthcare System

Source: U.S. Census Bureau

Seniors generally have higher pharmaceutical utilization rates, and
adherence to medication is essential to lowering overall healthcare costs

Pharmaceutical Market Dynamics
Continued Rise of Generics, Specialty Drugs

1. Source: IMS - Total US Pharma Prescriptions

Omnicare positioned well to capitalize on both
growing markets; generics and specialty.

Forecasted Pharmaceutical Developments(1) by Drug Type

Pharmaceutical Market Dynamics
Continued Rise in New Generic Introductions

2. Omnicare Source: Assumptions based on Omnicare data and OCR projected inflation rates

Omnicare’s speed to generic conversion benefits customers, and will
be increasingly critical as new generics become available.

Pharmaceutical Market Dynamics
Typical Life Cycle of Nonexclusive Generic Drug

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

Lowers sales but stronger gross
profit margin and dollars over time.

Transitioning to an Operations-Driven Company
Focus on Three Core Operating Objectives

• Establish
consistent organic growth in our Long-Term Care Group

• Reposition
Specialty Care Group for an elevated level of growth

• Create
more standardization across the company

Transitioning to an Operations-Driven Company
Establishing Consistent Organic Growth in LTC

• Focus on customer retention

– Revamp corporate culture, increase employee engagement

– Align incentive programs with customer service to improve retention

– Reshape the organization to bring it closer to the customer

– Organization-wide focus on the customer

– Objective is sustainable 95% customer retention rate

• Investments being made to accelerate sales results

– Reorganization of sales force - improve coordination of selling process

– Investments in sales tools, training programs

– Deploy resources in attractive markets

– Refine go-to-market message

– Customer-facing technology enhancements

Omnicare is further along with efforts to improve service delivery,

with sales and marketing investments now underway.

Transitioning to an Operations-Driven Company
Creating More Standardization

• Operating efficiencies

– Benchmarking

– Insourcing

– Six Sigma-Focused Culture

• Technological improvements

– ONE System

– Automation

– Customer-facing technology

– Medication availability

Standardization opportunities expected
to be a longer-term growth driver

3Q11 YTD net organic bed loss is
49.5% lower than 3Q10 YTD

Transitioning to an Operations-Driven Company
Establishing Consistent Organic Growth in LTC

43.2% better
than 2010

Transitioning to an Operations-Driven Company
Repositioning Specialty Care Group for Elevated Growth

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

•Continued improvements to the organizational structure

– Investments made in manufacturer-focused sales organization

– Platform-specific experts added to expand breadth of knowledge

•Expanding into other specialty-focused platforms

•Penetrating additional disease states in specialty pharmacy platform

– Primary disease states currently multiple sclerosis and oncology

•Leveraging long-term care business to create new opportunities

Annual growth rate for Omnicare’s specialty care businesses exceeds 20%(1)

1. Based on third-quarter 2011 results

Acquisition Program
Opportunities to Leverage Infrastructure

• Omnicare’s scalable platform makes LTC acquisitions attractive

– Leverage synergies through direct purchasing of generics

– Utilize hub-and-spoke network and automation/technology platforms

– Improvements in customer retention efforts lowers customer attrition
risk

• Disciplined approach to acquisitions with early involvement of
operators

• PharMerica offer

– Believe PharMerica to be an excellent fit

– Complementary business would enable combined company to benefit
from enhanced scale, provide a broader array of service offerings

– Consistent with the country’s ongoing efforts to lower healthcare costs

Disciplined approach to acquisitions requires at least 15% after-tax returns,
with acquisitions compared to other capital allocation alternatives.

Cash Flow
Generation

Specialty Care
Group

Omnicare’s Fundamental Objective
Focused on Growth and Creating Value

Value

Creation

John L. Workman

President & Chief Financial Officer

Financial Overview

Operating Performance
Sequential Progression Five Quarter Trend(1) (in millions, except percentage
data)

1. Excludes discontinued operations.

Financial Performance
Sequential Progression Five Quarter Trend(1)(2) (in $ millions, except per
share data)

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

Financial and Operational Highlights
Third Quarter 2011 Highlights

• Gross profit increased 2.9% sequentially to $346.1M on 0.7% decrease in sales

– Gross margin sequentially higher by 79 bps to 22.4%, reflecting higher generic
dispensing rates

• Cash flows from continuing operations of $167.1M increased 22.1% sequentially
and 43.7% over 3Q10

• Adjusted EBITDA(1) increased 7.5% sequentially to $157.2 million

• Adjusted EPS(1) of $0.54 as compared to 2Q11 of $0.50 and 3Q10 of $0.53

• Scripts flat versus 3Q10; 0.7% lower than 2Q11

– Utilization weaker, consistent with industry

– Generic dispensing rate increased 60 basis points sequentially

• Qtr. ending number of beds/patient assistance program (PAP) patients up 2,000
sequentially

– Beds 10,000 higher; PAP patients down 8,000

– Net organic bed loss of 8,000 decreased 27.3% from 2Q11 organic net bed loss of
11,000, and decreased 46.7% from 3Q10 organic net bed loss of 15,000

• $54.6 million returned to shareholders through share repurchases and dividends

1. Excludes special items. A reconciliation of non-GAAP information has been attached to our earnings press release of October 25, 2011 and is also available on our Web site under
‘Supplemental Financial Information’ from the ‘Investors’ page.

Focus on Cash Flow
Year-to-Date 2011 Performance

1. Excludes discontinued operations.

3Q11 YTD cash flow from continuing
operations 66.4% higher than 3Q10 YTD

Focus on Cash Flow
High Quality of Earnings

A significant amount of Omnicare’s
earnings is converted into cash flow

1. Free cash flow = cash flow from continuing operations less capital expenditures and dividends paid. Free cash flow does not fully reflect the ability to freely deploy cash as it does
not reflect required payments on indebtedness and other obligations. A reconciliation of free cash flow to net cash flows from operating activities is available on Omnicare’s
website under ‘Supplemental Financial Information’ from the ‘Investors’ page.

Focus on Cash Flow
Cash Flow Drives Substantial Value

• Highly compelling financial attribute is cash flow generation
capability

– High quality of earnings

– Creates flexibility for capital allocation initiatives

• Substantial value exists below the EBITDA line

– Significant amount of ongoing intangible asset amortization

– Lower cash tax rate vs. effective tax rate

– Capital expenditure requirements relatively modest

1. As of the close of trading on 12/2/2011. Free cash flow = cash flow from continuing operations less capital expenditures and dividends paid. Free cash flow does not fully reflect the ability to freely deploy cash
as it does not reflect required payments on indebtedness and other obligations. A reconciliation of free cash flow to net cash flows from operating activities is available on Omnicare’s website under
‘Supplemental Financial Information’ from the ‘Investors’ page.

14% free cash flow yield based on current
market capitalization(1)

Focus on Cash Flow
Substantial Long Term Value Exists Below the EBITDA Line

These items carry a weighted average life of over 9 years if the
company were to make no additional acquisitions

Focus on Cash Flow
Moving to Cash-Based EPS Reporting

Beginning in 2012, Omnicare will report adjusted earnings
excluding intangible asset amortization

While adding back:
Goodwill amortization tax deduction, and
Contingent convertible debenture interest tax deduction

Focus on Cash Flow
Reasons Behind Moving to Cash-Based EPS Reporting

• Increased transparency

– Clarifies some of the drivers behind Omnicare’s strong cash flows

– Narrows the gap between Omnicare’s adjusted earnings and cash flows

• Sustainable benefit over the long-term

– Weighted average life of the existing benefits extend approximately 9
years

– Additional acquisitions generally continue to extend these benefits
further

• Consistent with management’s view of the business

Financial Performance
Focus on Cash Flow - Pro Forma Results (in $ millions, except per share
data)

		3Q11 YTD



(4)	Contingent Convertible Debenture Interest - after tax	2,125
(6)	Total Additional Special Items - after tax	$ 58,192
(7)	Diluted Adjusted EPS(2)	$ 1.55
(8)	Cash EPS Adjustments	$ 0.51
(9)	Diluted Adjusted Cash EPS(2)	$ 2.06
(10)	Effective Tax Rate	37.5%
(11)	Dil. Avg. Shares Outstanding	114,930

The after-tax benefit in 3Q11 YTD was
$58.2 million or $0.51 per diluted share

1. Excludes special items. A reconciliation of certain non-GAAP information has been attached to our earnings press release of October 25, 2011 and is available on Omnicare’s Web site under ‘Supplemental
Financial Information’ from the ‘Investors’ page

2. Excludes discontinued operations

Capital Allocation
Putting the Robust Cash Flows to Work

Capital Allocation
Putting the Robust Cash Flows to Work(1)(2)

1. Excluding potential acquisition of PharMerica

2. Cumulative % Returned = (Dividends Paid + Share Repurchases) / 12/31/10 Market Capitalization of $2,961.0 million

Third quarter year-to-date capital returned to shareholders increased 44.5% over 2010

1. Assumes convertible debentures due 2035 are put to the company in 2015 with related tax recapture included and debt amounts shown are exclusive of unamortized debt discount.

Capital Structure

Goal is to spread out maturities to limit refinancing risk

Financial Performance
Longer-Term Targets(1)

	Target
• Adjusted Diluted EPS	Double digit three-year CAGR for the year ending 2013
• Cash Flow from Operations	$400 - $500 million annually
• Capital Returned to Shareholders	Approximately 25% per year (2)
• Capital Structure	Focus on continued debt reduction, management of maturity schedules

1. Not intended to represent expectations for any given year.

2. Board approval required for share repurchases and/or dividends. The number could vary by year based on available acquisitions and capital expenditure plans.

We believe investments made in 2011 are consistent with the targets

Financial Performance
Forward-Looking Major Drivers(1)

Major Drivers	2012	2013	2014
• Brand-to-generic	Positive	Neutral	Neutral
• Organic Growth - Long-Term Care	Neutral	Positive	Positive
• Reimbursement	Negative	Negative	Negative
• Specialty Care(2)	Positive	Positive	Positive
• ONE System	Neutral	Positive	Positive
• Standardization Initiatives	Neutral	Positive	Positive
• Automation	Neutral	Positive	Positive
• Omnicare-at-home	Neutral	Positive	Positive

1. Information on this slide is not intended to represent the company’s financial guidance for 2012, 2013 or 2014

2. Includes an assumption for acquisitions

Omnicare continues to invest in elements to drive future growth

ONE System

Efficiency-Driving Infrastructure Enhancement

• Implementing plans to modernize our Pharmacy and Billing System

– Currently utilizing multiple dispensing systems running technology that
is not state of the art

– Not fully integrated with LTC product lines and financial systems

– Specialty Care Group systems not integrated

• Oracle solution will update pharmacy systems with an integrated
ERP solution across all business units

– A combination of commercial software and custom development will be
required to improve technology platforms

• Projected timeline to develop and fully implement is 48 months
(started
in 2Q11) but some benefits start in late 2012

ONE System expected to be significant driver of efficiency improvements

Anticipated Operational Benefits

• Improved customer service through customer-facing technology

– Integration from the facility to the pharmacy

• Improved technology foundation

– Pharmacy automation

– On-site facility automation

– Communication with payors

• Improved compliance performance

• Improved data accuracy and timeliness

– Across multiple lines of business

• Better foundation for growth and conversion of future acquisitions

– Easily scalable

– Fewer customer disruptions

• Improved company reporting

Implementation Releases and Schedules

Anticipated Financial Benefits and Return on Investment

• Cost Benefits

– No longer supporting 2 disparate systems

– Fewer resources (headcount) in collections, dispute resolution

– Executive information needs “main streamed”

• Integrated with CPOE efforts to create efficiencies for lost revenue
and requiring fewer people in order entry

• Improved processing of rejected claims and more efficient claims
processing

– Lower bad debt expense and days sales outstanding (DSOs)

• ONE system expected to increase capital expenditures by $15M -
$20M each of the next few years (beginning in 2011)

• Significant returns on investment expected to begin in 2013

Jeff Stamps

Executive Vice President and
President LTC Operations

LTC Pharmacy

By the Numbers

Long-Term Care Pharmacy
By the Numbers

Our customer base is very fragmented with our largest facility
customer representing only 2.6% of Long-Term Care revenue

1. Based on 3Q11 YTD results

Operating Model

Long-Term Care Pharmacy
Typical Prescription Dispensing Cycle

The Omnicare Advantage

Omnicare’s Offering Revolves Around Value Creation
COST Management Equates to Customer Success

• eRefill

• Managed care
exclusions

• Discharge to
home

• Returns

• Split billing

• Infusion

• Survey
preparedness

• Customer
defined

• Omniview
admissions
review

• Omniview
paperless
invoice

• Omniview
management
reports

• Electronic
Medication
Administration
Record (eMAR)

• Census feed

• Industry standard
Geriatric
Pharmaceutical
Guidelines®

• Facility formulary
initiatives

• Pharmacy
clinical edits

• Generics first

• Utilization
solutions

• Consultant
recommendation
s

Omnicare’s Clinical Organization
Robust Infrastructure in Place to Improve Patient Outcomes

Clinical Processes & Programs
Clinical Tools Designed to Create Value for Customers

Clinical Program Content and Design

• Geriatric Pharmaceutical Care Guidelines®

– Clinical ratings determined by Philadelphia College of Pharmacy

– Endorsed by American Geriatrics Society

• Health management programs are evidenced-based

– Chief Clinical Officer

• Established policies and procedures for therapeutic
interchange programs

Omnicare’s clinical programs generate average annual
cost savings of 5%-15% for our customers(1)

1. Varies by customer, based on Omnicare internal data

Generic Drug Efficiencies
Speed-to-Generic Conversion Drives Value

Omnicare’s customers have realized over $200 million in
savings from generics launched for the trailing four quarters

1. Source: Omnicare and IMS data for Aricept, Levaquin, Xalatan, Zyprexa and Zyprexa Zydis

Operationally Driven Services

Pharmacy quality assurance audit

Service charges adhere with contract terms

Contract non-covered rules are followed

RxClaim Adherence

Non-covered charge control

Credit memo

Electronic invoicing and timeliness of bills to customer

Medical records review

New transition / start up support

Educational in-service

Participation in ‘mock survey’ process upon request

Focused area visits

Operationally Driven Services
Co-Marketing Opportunities

Programs Designed to Assist with Census Development

Marketing Brochures

Infusion Program

Discharge Programs

Health Fairs

Medical Screenings

Omnicare-at-Home

Specialty Programs

• Infusion

• Survey preparedness

• Customer defined

• Leveraging Specialty Care Group assets

Improving the quality of services
provided to enhance patient care

Pharmacy Automation Video

Technology Strategy
Deployment of Automation and Customer-Facing Technology

• Develop and implement new technology for Pharmacy and
In-Facility solutions that provides the following benefits:

– Highest accuracy and quality with a validate-able process

– A streamlined process to improve service

– Reduced operational costs

– Improved customer retention

Omnicare’s technological capabilities create efficiencies
including lower costs for both Omnicare and its customers

Technology Tools
Leading Technology Initiatives

A proprietary robotic dispensing process for card and box products

18 ALV systems are currently in operation with plan to add systems in 2012

Combines the pick, label print & apply, verification and sorting steps into
one function

Currently in pilot with roll-out commencing in mid-2012

Most efficient pouch dispensing technology leveraging Hub and Spoke
model for ALF

Pilot to begin in early 2012 with roll-out commencing by year-end

In-facility solution that improves: “Lack of Medication” events; Security and
access control; Management of controlled substances; Administration

Currently in pilot with multi-year roll-out commencing in mid-2012

OmniviewTM, OmniviewDr, MyOmniview

Technology Tools
Leading Technology Initiatives

• As we expand our current base of validate-able technology with
additional ALV units and planned ULV units, the percentage of scripts
automated is expected to increase dramatically

Technology initiatives expected to be a driver of cost savings,
retention and growth opportunities in late 2012 and beyond.

Classic Omniview

Omniview™

Omnicare’s secure web-based worksite for
customer facilities, prescribers and patients

OmniviewDr

MyOmniview

Customer-Facing Technologies
Classic Omniview™

Billing, Claims Management, Census

Drug Info, Geriatric Pharmaceutical Care Guidelines®,
P&Ps, Medicare Part D

Drug Spend, Utilization, Formulary

Consultant Pharmacist Reviews, Health Management,
IV Therapy Protocols

Barcode scan processing refills, Returns (where permissible),
Drug destruction (where permissible)

Customer-Facing Technologies
Omniview™ Usage Increasing Among Customer Base

Customer-Facing Technologies
OmniviewDr

Profile

Allows you to update information related to your profile.

Medication Regimen Review

Allows you to review and respond to patient-specific comments posted by the Omnicare consultant pharmacist

Health Record

Allows you or your staff to view your SNF, ALF and ILF patients’ health records as prepared by Omnicare and allows prescribers to perform
e-prescribing (Add, Change, and Discontinue Medication Orders).

Prescription Order Center

Allows you or your staff to approve refill requests for ALF and ILF patients.

Admissions Review

Allows you or your staff to request an estimated price quote for a specific drug.

Reference Library

Allows you or your staff to view the document library for reference on a number of topics.

Media Center

Allows you or your staff to pick up messages related to your activity on OmniviewDr.

OmniviewTM Video

Customer-Facing Technologies Enhance Connectivity
MyOmniview

Establish Consistent Organic Growth

Establish Consistent Organic Growth
Focus on Customer Retention

• Initiatives designed to improve the customer experience

– Revamp corporate culture, increase employee engagement

– Align incentive programs with customer service to improve retention

– Reshape the organization to bring it closer to the customer

– Organization-wide focus on the customer

– Objective is to achieve a 95% customer retention rate

– Constant touch, communication and feedback programs

Establish Consistent Organic Growth
Focus on Customer Retention

Customer response to service enhancement
initiatives has been favorable.

Establish Consistent Organic Growth
Sales and Marketing Developments

• Initiatives designed to accelerate sales results

– Revamped commission programs

– Reorganization of sales force - improve coordination of selling process

– Size of sales force doubled since the start of 2011

– Investments in sales tools, training programs

– Expanded technology offerings

– Convey the Omnicare value story

3Q11 YTD net organic bed loss is
49.5% lower than 3Q10 YTD

Establish Consistent Organic Growth
Sales and Service Initiatives Gaining Traction in 2011

43.2% better
than 2010

Establish Consistent Organic Growth
Growth Opportunities Beyond Skilled Nursing Facilities(1)

1. Based on market analyses performed by the company

Using the Omnicare Advantage to Drive Growth

Value

Creation

Through The Omnicare Advantage,
we believe we will establish consistent organic
growth in Long-Term Care Pharmacy.

Nitin Sahney

Executive Vice President and

President Specialty Care Group

Specialty Care Group

By the Numbers

Specialty Care Group
By the Numbers

Solution Driven

Manufacturer
Centric

Using the Omnicare Advantage to Create Value

Value

Creation

Specialty Market

What is Specialty?

• Specialty product
characteristics

– Annual cost of therapy ($25,000
to $150,000 per year)

– Patient population (ranging from
hundreds to 250,000)

– Route of administration
(frequently injected or infused)

– Chronic disease states

– All branded products, typically
injectable

• Rapidly growing market sector

– 22% market share increase
from 2008 to 2010(1)

– 15.4% growth rate in 2010 (2)

Specialty Therapeutic Categories

• Rheumatoid Arthritis

– Enbrel

– Humira

• Multiple Sclerosis

– Avonex

– Copaxone

– Betaseron

• Onocology

– Revlimid

– Gleevec

• Growth Hormones

– Norditripin

– Nutropin

1. Medco data

Framing the Specialty Market

1. Source: EvaluatePharma; World Preview 2016

Specialty drug market growing four times as fast as the traditional

drug market with annual growth rates ranging from 15-20%

Pharmaceutical Market Share(1) by Drug
Type

Small Patient
Populations

Complex Supply
Chain

Clinical Support

Insurance

Cost

Regulatory
Monitoring

Framing the Specialty Market

Specialty Products Face Unique
Challenges

Omnicare’s Specialty Opportunity

100

Seizing the Opportunity

101

Value Creation through Unique Solutions

102

Undifferentiated

Differentiated

Commoditized

Premium

Patient

Co-Pay

Services

Specialty

Pharmacy

Support

HUB Services

Our Solutions Create Value

The SCG Support Products from Phase III through
Commercialization

The Physicians

Smooth Initiation of therapy

Build brand loyalty

Reduce staff time

The Manufacturer

Retain and increase market share

Deliver brand promise

Differentiation from competition

The Patient

Remove barriers to access

Increased speed to therapy

Focus on health

End of Life
Care

Operational Platforms

104

Brand

Support

Services

Third
Party
Logistics

PAP &
Consigned
Pharmacy

Manufacturer

Fee for Service Model

Manufacturer owns the product

Specialty
Pharmacy

Third Party
Payers

Buy/Sell
Model

Hospices

Per Diem
Model

SCG owns the product

Customer

Revenue

Product

Proven Success

105

A Case Study
Consolidation of Services

Growth Hormone

• Seven (7) products in the market
before our launch

• Brand differentiation created
through:

– Product’s injection device

– Manufacturer’s patient/physician
support center

A Case Study
Consolidation of Services

• Client’s product was trailing in
market share

• Support services were disjointed
and offered through separate
organizations

A Case Study
Consolidation of Services

• Consolidation of services into a
single organization - control of
messaging

• Partner with company solely
focused on the success of the
program/product

A Case Study
Consolidation of Services

• Contributes to successful product
launch

• Support program was rated number
one in blinded study in 2010 by 26%
over competitive programs

• Improved adherence and patient care

Service
business
is not
focus.

Omnicare Specialty Care Group
ACS		Brand Support			SP Rx Fulfillment
excelleRx					Hospice
PBM Plus		Brand Support
RxCrossroads		Brand Support	Third Party Logistics	PAP/Consigned Rx
Service Providers
Covance	Public	Brand Support
Parexel	Public	Brand Support
Amerisource Bergen (ICS, Lash, Theracom)	Public	Brand Support	Third Party Logistics
Cardinal Health	Public	Brand Support	Third Party Logistics
DDN Logistics	Private		Third Party Logistics
UPS Logistics	Public		Third Party Logistics
ExpressScripts, Curascript , Healthbridge	Public	Brand Support			SP Rx Fulfillment
McKesson	Public	Brand Support			SP Rx Fulfillment
Product Dispensing
Axium Healthcare	Private				SP Rx Fulfillment
Biologics	Private				SP Rx Fulfillment
BioScrip	Public				SP Rx Fulfillment
CVS/Caremark	Public				SP Rx Fulfillment
Diplomat	Private				SP Rx Fulfillment
Medco/Accredo	Public				SP Rx Fulfillment

The Competitive Landscape
SCG Has Most Competitive Offering

110

Repositioning for Elevated Growth

111

The First Year

Laying the Foundation for Growth

11/1

Group Formed
EVP/President
Hired

11/8

SVP - Operations
SCG

11/1/2011-1/28/11

Evaluation of Existing
SP Operations

Nov

2010

Dec

2010

Jan

2011

Feb

2011

Mar

2011

Apr

2011

May

2011

Jun

2011

Jul

2011

Aug

2011

Sept

2011

Oct

2011

Nov

2011

2/5/11

VP Finance
for ACS

2/17/11

Relocation
of ACS

3/1/11

SVP/GM
of ACS

4/19/11

Open New
Logistics
Center

5/5/2011

Relocate
Plasma
Logistics
Operations

6/1/11

VP Business
Development

6/6-6/30/11

Sales Strategy
Development

7/13-9/22/11

Sales Team
Deployment

9/16/11

VP of
Operations
for Group

10/1/2011

Consolidation
of Satellite
Pharmacy

11/1/11

VP,Access
Solutions
for Group

11/15/11

Open New
Brand Support
Service Center

The First Year

• Supporting manufacturers

– Managed over $1B in commercial inventory annually

• 99.97% inventory accuracy

– Shipped over 19 million units in the past year

• 99.97% shipment accuracy

– Stored and managed over 1 million liters of plasma on a weekly basis

• Market leader in plasma supply chain

• Supporting patients

– Solved 3,000 reimbursement challenges weekly

– Supported 350,000 active patients with specialty needs in the past year

• Answered over 4.8 million calls

• Fulfilled over 6 million prescriptions

• Serviced 2 million hospice patients

• Planning for growth

– Additional Pharma grade logistics center in Louisville (100,000 sq. ft.)

– New Plasma logistics center in Erlanger, KY (25,000 sq. ft.)

– Expansion of Brand Support service center footprint in Louisville, KY

– Increase of over 100 new FTEs in Brand Support Services

113

The First Year

Group poised for solid organic
growth

•Industry experiencing top-line
growth of 15%-20%

•Focus on client retention

– No manufacturer client losses
in the past year

– Achieved organic growth with
current partners

•Winning new business

– Awarded and transitioned
business from direct
competitors in the past 2
quarters

– Won business from new
customer leveraging assets
of group

114

The First Year

115

Implementing program leveraging
multiple platforms of the group

Used to support 2011 growth from
transition of business from competitors

Currently at 25%
capacity for
growth

Industry expertise
for solution
development

The First Year
Financial Accomplishments Since Reorganization

116

1. Pro-Forma, subject to change

2. Excludes any corporate allocation, therefore not reflective of pure stand-alone business

SCG Revenue
YTD 9/30/11

117

Payor Mix

Revenue by Service

Looking Ahead

118

Looking Ahead

• Leverage expertise for organic
growth in key therapeutic
categories

– Oncology

– Auto-Immune

– Infectious Disease

– Endocrinology

– Blood Disorders

• Integrated solutions create growth
across platforms

– Brand support

• HUB programs

• Reimbursement

• Co-pay assistance

– Third party logistics

– PAP & consigned pharmacy

119

Solution Driven

Manufacturer
Centric

Using the Omnicare Advantage to Create Value

Value

Creation

121

John Figueroa

Chief Executive Officer

Looking Ahead

123

New Disclosures for Greater Transparency

124

1. Initial guidance for 2012 will be presented both ways.

Compelling Avenues for Growth

125

Efficient Capital Deployment to Augment Growth
Initiatives

126

Robust cash flow generation is expected
to be redeployed toward growth drivers

Goal to Generate Consistent Double-Digit Adjusted EPS
Growth

127

1. Not intended to represent expectations for any given year.

PharMerica Offer

• PharMerica offer

– Believe PharMerica to be an excellent fit

– Complementary business would enable combined company to benefit
from enhanced scale, provide a broader array of service offerings

– Consistent with the country’s ongoing efforts to lower healthcare costs

– The time for combining Omnicare and PharMerica is now

• Status update

128

129

Efficiency
Improvements

Greater
Adherence

Patient Assistance
Programs

Efficiency
Improvements

Technological
Investments

Efficiency
Improvements

Third Party
Logistics

Lower Drug
Costs

Disease
Management

Greater
Adherence

Brand
Support

Omnicare’s Efforts to Solve the Healthcare Cost
Dilemma

Where Omnicare benefits, so do its customers, payors and patients…

Efficiency
Improvements

Omniview

Lower Drug
Costs

Generic
Drugs

Lower Drug
Costs

Clinical
Programs

Reduced Medical
Errors

Automation
Initiatives

Greater
Adherence

Omnicare at
Home

Greater
Adherence

Focused on improving quality of patient care at the lowest possible cost

Cash Flow
Generation

Specialty Care
Group

Omnicare’s Fundamental Objective
Focused on Growth and Creating Value

Value

Creation

Senior Management

131

Management Team

132

Rocky Kraft

SVP, Finance

Bob Dries

SVP, Operations Finance Group

Beth Kinerk

SVP, Sales and Customer Development

Tracy Finn

EVP, Strategic Planning and Development

Aly Kayne

SVP, General Counsel

Gary Erwin

SVP, Professional Services

Tim Hopkins

SVP, Trade Relations

Tim Canning

SVP, Marketing

Dan Maloney

SVP, Purchasing

Patrick Lee

VP, Investor Relations

EVP, Human Resources

Priscilla Stewart-Jones

Randy Carpenter

SVP, Chief Information Officer

Mike Szesko

VP, Automation

133