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WORLD RECOGNITION of DISTINGUISHED GENERAL COUNSEL GUEST OF HONOR: Thomas M. Moriarty Executive Vice President, Chief Health Strategy Offi cer & General Counsel, CVS Health WORLD RECOGNITION of DISTINGUISHED GENERAL COUNSEL THE SPEAKERS Thomas M. Moriarty Mary Langowski Joe Lockhart Vincent A. Cino Executive Vice President, Partner, DLA Piper Founding Partner & Chairman, Chief Health Strategy Managing Director, Jackson Lewis P.C. Officer & General Glover Park Group Counsel, CVS Health Creighton Condon Matthew Hurd Enu Mainigi Senior Partner, Shearman Partner, Sullivan & Partner, Williams & & Sterling LLP Cromwell LLP Connolly LLP (The biographies of the speakers are presented at the end of this transcript. Further information about the Directors Roundtable can be found at our website, www.directorsroundtable.com.) TO THE READER General Counsel are more important than ever in history. Boards of Directors look increasingly to them to enhance financial and business strategy, compliance, and integrity of corporate operations. In recognition of our distinguished guest of honor’s personal accomplishments in his career and his leadership in the profession, we are honoring Thomas M. Moriarty, Chief Health Strategy Officer and General Counsel of CVS Health, with the leading global honor for General Counsel. CVS Health is the largest pharmacy health care provider in the United States, with integrated offerings across the entire spectrum of pharmacy care. His address will focus on the challenges and opportunities that can be found at the intersection of law and public policy, particularly in light of the Affordable Care Act. The panelists’ additional topics include managing enforcement and regulation with key agencies; the role of mergers and acquisitions in identifying new business solutions; and the role that public policy plays in shaping a company’s business and, ultimately, its legal strategy. The Directors Roundtable is a civic group that organizes the preeminent worldwide programming for directors and their advisors. Jack Friedman Directors Roundtable Chairman & Moderator Spring 2014 2 WORLD RECOGNITION of DISTINGUISHED GENERAL COUNSEL Thomas Moriarty is Executive Vice President, served as General Counsel and Corporate Chief Health Strategy Officer and General Secretary, and also as President of Global Counsel for CVS Health. In this role since Pharmaceutical Strategies. He served on the October 2012, Moriarty leads the company’s company’s Executive Committee and was a legal and government affairs departments and critical advisor to the team that developed the Office of the Secretary. and executed Medco’s strategic merger with Express Scripts. A seasoned executive with many years of legal, regulatory and health policy expe- Previously, Moriarty worked at various posi- rience in the health care sector, Moriarty tions in the Office of the General Counsel most recently served as General Counsel at at Merck & Co., the global biopharmaceu- Thomas M. Moriarty the Celgene Corporation, a biopharmaceu- tical company. He began his career at the Executive Vice President, Chief tical company, where he was responsible for law firm of Mudge Rose Guthrie Alexander Health Strategy Officer and global legal strategy and served on the com- and Ferdon in New York. General Counsel pany’s Management Committee. Moriarty received his law degree from the Prior to that, Moriarty spent twelve years University of Virginia School of Law and his at Medco Health Solutions, where he undergraduate degree from Lafayette College. CVS Health and consumers expanded choice, greater Longs Drug stores. CVS/pharmacy is rein- access and more personalized services to help venting pharmacy to help people on their them on their path to better health. path to better health by providing the most accessible and personalized expertise, both CVS Health Pharmacy Services, the phar- in its stores and online at CVS.com. macy benefit management (PBM), mail CVS Health (NYSE: CVS), headquartered order and specialty pharmacy division of MinuteClinic, the retail medical clinic divi- in Woonsocket, RI, is the largest pharmacy CVS Health, provides a full range of PBM sion of CVS Health, is the leading retail health care provider in the United States, with services, including mail order and spe- medical clinic provider in the United States. integrated offerings across the entire spectrum cialty pharmacy services, plan design and MinuteClinic launched the first retail medi- of pharmacy care. Through our unique suite administration, formulary management, cal clinics in the United States in 2000 and of assets, we are reinventing pharmacy to discounted drug purchase arrangements, now has more than 800 locations in 28 states offer innovative solutions that help people Medicare Part D services, retail pharmacy and the District of Columbia. By creating a on their path to better health. We are focused network management services, prescription health care delivery model that responds to on enhancing access to care, lowering overall management systems, clinical services and patient demand, MinuteClinic makes access health care costs for plan members and pay- disease management services. Our clients to high-quality medical treatment easier for ors, and improving health outcomes. are primarily employers, insurance compa- more Americans. Nationally, the company nies, unions, government employee groups, has provided care through 20 million patient We are uniquely positioned to deliver signifi- managed care organizations and other spon- visits, with a 95% customer satisfaction rat- cant benefits to health plan sponsors through sors of health benefit plans, and individuals ing. MinuteClinic is the only retail health effective cost management solutions and inno- throughout the United States. care provider to receive three consecutive vative programs that engage plan members accreditations from The Joint Commission, and promote healthier, cost-effective behav- CVS/pharmacy, the retail division of CVS the national evaluation and certifying agency iors. Our integrated pharmacy services model Health, is America’s leading retail pharmacy for nearly 15,000 health care organizations enhances our ability to offer plan members with more than 7,600 CVS/pharmacy and and programs in the United States. Spring 2014 3 WORLD RECOGNITION of DISTINGUISHED GENERAL COUNSEL JACK FRIEDMAN: Good morning. I am Jack Friedman, Chairman of the Directors Roundtable. We are a civic group that has done 800 events in 23 years around the world for boards of directors and their advisors. We have never charged anyone to attend the programs. Boards of Directors tell us that companies rarely get favorable reviews about anything that they do. We are a neutral forum to tell people that businesses are socially conscious and that their leaders are proud of how their companies operate, as well as giving you a chance to meet some of these lead- ers personally. Today’s program is of special interest, because the healthcare industry is going through important changes and developments. Healthcare is universally of interest to almost any company. Their program beyond this important breakfast wrote what I thought was the perfect memo employees are concerned about healthcare meeting and projects it out on a global for the senior partner. I researched it, cite coverage and healthcare services. It is a very basis, which makes it very special. checked it — everything was in perfect order. important issue at this time. I handed it in. The next day, I reviewed it Without further ado, I would like Tom to with the most senior partner of the firm. His We will start with our Guest of Honor, make his opening remarks. office overlooked the Brooklyn Bridge down then we will have the panelists speak to on Wall Street — it was a real power center. make opening remarks, followed by a THOMAS M. MORIARTY: Good morn- He said, “This is a very good memo — it’s roundtable discussion and questions from ing everyone, and thank you, Jack. I see a lot very well-written, but there’s something miss- the audience. of old friends in the room. Before I begin, I ing from it.” I am sitting there as a first-year want to thank Creighton Condon and every- I would like to introduce our Guest of associate thinking, “What did I do?” What one here at Shearman & Sterling for this he said — and I’ve never forgotten it — is, Honor, Thomas Moriarty, who is the venue and for all the support you have given “You tell me in this memo what the law says. Executive Vice President, Chief Health for this program. I really appreciate it. I also But what is very important is to always tell Strategy Officer and General Counsel of want to thank our panelists. We have a great clients what the law means.” That is some- CVS Caremark. We keep the introductions group here. What is important to me is we thing that I’ve never forgotten, and it’s really to a minimum, so we can discuss content have a great group of not only legal minds, become a cornerstone of how I’ve practiced. instead of the great achievements of the peo- but also non-legal minds. With Mary and ple who are up here. Joe, the whole purpose of my talk and, hope- fully, this program, is to emphasize that legal Many years later — as my family will note, Tom has incredible credentials in terms of decisions really are not made in isolation. with a lot less hair — the maxim still holds service with different companies, and I will Looking at the broader ecosystem in which true. I would argue today — as we go forward mention some of them. Chronologically, a company operates is a focus for me in the — it is even more important, given the com- after graduating from Lafayette College and role that I play every day. plex ecosystem in which heavily regulated University of Virginia School of Law he companies, like CVS Caremark, operate. worked in a law firm, Merck, Medco, and I would like to start my remarks by sharing Celgene serving as General Counsel and in a quick story as a first-year associate fresh out Put simply, legal work cannot be done in iso- the Executive Committee.