Major firm 'afraid to oppose Medco/Express Scripts merger'
Large firms are too afraid to speak out about a proposed merge between Medco and Express Scripts in the US, it has been claimed.
A senator listening to the argument of Medco Health Solutions
and Express Scripts about why they should be allowed to conduct a
merger has highlighted that major firms are too scared to enter the
business negotiations and oppose the deal.
Herb Kohl, head of the Senate Judiciary Committee's antitrust
panel, stated large companies had privately complained that the
agreement could create unfairness in the market.
Despite this, those in opposition to the deal had refused to come
forward in public, with the politician revealing "they feared
retaliation from the large PBMs with whom they do business".
The merger is reported to be worth up to $29 billion (£18.6
billion) and executives from both Medco and Express Scripts have
claimed they will be able to offer better prices for customers if
it goes ahead.
One acquisition in the medical sector was recently agreed was that
of HealthSpring by Cigna Corporation, which was valued at around
Posted by David Gleck
Source: Reuters and Dow Jones Newswires, December 7th