FMI sends FTC letter opposing Express Scripts and Medco merger
The FMI has sent a letter to the FTC opposing the merger between Express Scripts and Medco.
Negotiation strategies could be useful during the proposed merger between Express Scripts and Medco Health Solutions, as the Food Marketing Institute (FMI) has said the combined company could damage the market.
In a letter opposing the proposal sent to Federal Trade Commission (FTC) chairman Jon Leibowitz, the FMI claimed the merger would "destroy competition by creating a behemoth with the power to unilaterally slash reimbursement rates to uncompetitive levels".
It would cause the end of free and cut-price generic drug programmes that countless US citizens are reliant on and hamper access to other essential pharmacy services, the organisation continued.
FMI members distribute more than 30 per cent of the country's drugs and have an important position advising consumers of the cheapest treatment options available, it added.
Express Scripts intends to purchase Medco for $29 billion (£18.32 billion) and a source close to the merger told the New York Post that the FTC is still likely to approve the proposal.
Posted by Ken Hayes
Source: FMI press release, February 6th