The wait might finally be over. Pharmacy benefits management heavyweights Express Scripts
A significant merger indeed
The merged unit is slated to serve upward of 115 million customers and can earn a whopping $110 billion a year.
The combination will create the largest pharmacy benefits operator in the U.S. and control nearly one-third of the market. Most customers and regulators feared that the deal would create a monopoly in the market and could mean that the two together may unfairly drive up prices. However, Express has argued that the deal between the two will give consumers greater power to bargain over prices.
The merger could increase efficiency, as the company will have a wider reach without incurring any extra costs.
The merger has an edge
Along with Express and Medco, CVS Caremark
CVS just fought its own battle with the Federal Trade Commission and was made to pay $5 million to the FTC to compensate for having manipulated the prices of some Medicare Part D prescription drugs. This may allow Express and Medco to gain more market share and steal CVS's customers away.
One gains, the other loses
One retailer that will surely lose out from this merger is Deerfield-based drug retailer Walgreen
We'll know soon, if the two get regulatory approval to merge. It may be a good time to take a close look at the two as they try to change the face of the pharmacy benefits space. To keep tabs on the impending merger, click on the links below to add the stocks to your free watchlist, and we at the Motley Fool will keep you updated on the latest happenings.