Express Scripts to buy Medco for $29 billion [View All]

[n2doc]

By Lewis KrauskopfPosted 2011/07/21 at 2:47 pm EDT

NEW YORK, July 21, 2011 (Reuters) — Express Scripts Inc will buy rival Medco Health Solutions Inc for $29.1 billion, creating a U.S. powerhouse in managing prescription drug benefits that is sure to draw antitrust scrutiny.


Express Scripts would gain much more leverage for negotiating drug prices for employers and other clients who must reduce their exposure to spiraling healthcare costs. Such expertise has made the industry's services all the more attractive and lured new competitors.

The deal would give the combined company greater clout against drugstore chains like Walgreen Co and increase competition with the likes of CVS Caremark Corp.

"This combined entity is a much better entity than the individual parts," Jefferies & Co analyst Arthur Henderson said. "This combination, from a growth standpoint, really improves the outlook. Once integrated, the growth is going to slow to some extent, but that may be several years away."
more

http://www.newsdaily.com/stories/tre76k1gg-us-expressscripts/