SXC Health Solutions Corp. (SXCI) - Mark A. Thierer: Interview With The Chairman And CEO

67 WALL STREET, New York - November 8, 2011 - The Wall Street Transcript has just published its Health Care IT Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Electronic Health Records Implementation - P/E Multiple Expansion for Health Care IT - Analytics for Evidence-Based Care Protocols - Health Care IT Consolidation - EHR Bookings Growth Rate

Companies include: Advisory Board (ABCO); Allscripts (MDRX); CPSI (CPSI); Cerner (CERN); Cigna (CI); Emdeon (EM); Epocrates (EPOC); and many more.

In the following brief excerpt from the Health Care IT Report, expert analysts discuss the outlook for the sector and for investors.

Mark A. Thierer is Chairman and Chief Executive Officer of SXC Health Solutions Corp. He joined the company in 2006 as President and COO. Mr. Thierer has 30 years of experience in the pharmacy benefits management and health care information technology markets. Before SXC, he was President of Physicians Interactive, a division of Allscripts, Inc. Before Allscripts, Mr. Thierer spent 10 years with CaremarkRx, now CVS Caremark Corporation, where he was a corporate officer and key executive . At Caremark, he held numerous senior operating positions, including Senior Vice President, Industry Relations, where he built extensive executive-level supply chain relationships with pharmaceutical, biotech and generic drug companies. He holds a B.S. in finance and an MBA. He also is a Certified Employee Benefits Specialist.

TWST: What are the services SXC Health Solutions offers to clients?

Mr. Thierer: As you may recall, we started in this business as a technology company and initially set out to be the claims-processing or adjudication platform for a large majority of the PBMs that operate in the open market, both freestanding PBMs and PBMs embedded inside health plans. That's the genesis of the company. From that starting point, we've built out now a full suite of what I call full-service PBM offerings. So today, our product line begins at the most basic level with tools to allow certain clients to run their own PBM operations.

Those tools are primarily software products like RxCLAIM, our claims-adjudication platform and all the satellite products that someone might need, the picks and shovels to help them own and operate their own PBM operation, and all they're using there are the technology tools. Now, as clients move up the scale of complexity, they add services to those tools. Those services include full pharmacy benefit management services like mail order, specialty pharmacy or biotech injectable management, clinical products and services. This is really under the broad header of cost-containment tools that clients can buy on a menu basis.

At the highest level, we can provide a full turnkey set of products and services for an employer, including full plan design consultation, a full implementation and a full set of services, all wrapped around mail order, specialty pharmacy and cost-containment PBM offerings. That's what the product line looks like, and it's one of the things I think that sets us apart. It is the broadest product line in the industry because we're one of the only players who can break it down and sell you the most basic elements, the picks and shovels. We're the only guys who can do that.

TWST: Are you finding that clients are moving toward either the whole system or the individual pieces, or are they interested in both of those?

Mr. Thierer: Our ability to offer the exact solution a client needs is one of the big drivers on why we're growing at this rate. More and more customers are becoming smarter and demanding flexibility and customization around their needs in the pharmacy management area. Some of our big wins have been on the back of our ability to unbundle the traditionally bundled offerings. This is our value proposition. We're talking about unbundling: in fact, dismantling the traditional bundled offering and breaking it apart to wrap a unique or discrete customized solution around a set of needs.

A couple of good examples are our most recent win at HealthSpring and at Bravo. For Bravo, we won this health plan, which is about a $1 billion health plan in drug spend, because we were willing to unbundle or disaggregate the service offerings around their unique needs. We're catching the market at a time when sophisticated clients are asking for this. It's right in the center of our wheelhouse, our ability to break this apart and sell on an unbundled basis a discrete or menu-based set of pharmacy benefit management services. Thus, we're really going to town on that.

TWST: What is your growth strategy for the next couple of years?

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