Acquisitions in the health-care space just keep on coming, but at least this one looks a lot healthier for the acquiring company than the recent big pharma buyouts by Pfizer
Today, Express Scripts
As part of the deal, Express Scripts got a 10-year contract to provide pharmacy benefit management to WellPoint. The acquisition will increase the number of prescriptions Express Scripts fills by about 50%, pushing it ahead of rival CVS Caremark
WellPoint's sale of NextRX still looks shortsighted to me. Sure, WellPoint is trading at much lower multiples than it has in the past, and the insurer expects to use some of the windfall it gets from selling off NextRX to buy back shares. But it'll miss out on the continued rise of pharmacy benefit management. President Obama's plan to decrease the cost of health care -- including increasing the use of generics -- plays right into the hands of pharmacy benefit managers. UnitedHealth Group
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