Drugstore leader Walgreen Co (WAG.N) may need to make amends in its $5 billion contract spat with Express Scripts now that the pharmacy benefits manager looks to be getting much bigger, industry watchers say. Express Scripts Inc (ESRX.O) said on Thursday it would pay $29.1 billion to purchase rival Medco Health Solutions Inc (MHS.N) and become the biggest U.S. pharmacy benefits company, with easily one-third of the market. The deal could take a year or more to pass through regulatory hurdles, but in the interim it could already have the power to realign the industry, from rival PBM companies to drugstores and pharmaceutical companies. The Walgreen fight may be the most immediate example. Last month it said it was breaking its relationship with Express Scripts over prescription pricing, risking more than $5 billion in annual sales. But it would not be able to afford to shut out a combined company with Medco.
Walgreen Co. (Walgreen) together with its subsidiaries, operates a drugstore chain in the United States. Shares of WAG fell by 4.89% or $-2.045/share to $39.76. In the past year, the shares have traded as low as $26.77 and as high as $47.11. On average, 6310280 shares of WAG exchange hands on a given day and today's volume is recorded at 30647370.
Express Scripts, Inc. is a pharmacy benefit management (PBM) operating in North America, offering a range of services to its clients, which include health maintenance organizations (HMOs), health insurers, third-party administrators, employers, union-sponsored benefit plans, workers? compensation plans and Government health programs. Shares of ESRX traded higher by 5.63% or $2.96/share to $55.50. In the past year, the shares have traded as low as $41.55 and as high as $60.89. On average, 5070640 shares of ESRX exchange hands on a given day and today's volume is recorded at 70940312.
Medco Health Solutions, Inc. (Medco) is a healthcare company. Shares of MHS traded higher by 15.38% or $8.58/share to $64.36. In the past year, the shares have traded as low as $43.45 and as high as $65.39. On average, 3589600 shares of MHS exchange hands on a given day and today's volume is recorded at 63393904.
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