Express Scripts Inc (ESRX.O) will purchase rival Medco Health Solutions Inc (MHS.N) for $29.1 billion to create a U.S. powerhouse in managing prescription drug benefits, the companies said. An experienced acquirer, Express Scripts would gain even more leverage for negotiating drug prices for its employer and other clients who have made it a priority to reduce their exposure to spiraling healthcare costs. Such expertise has made the industry's services all the more attractive. The deal would give them greater clout against drugstore chains like Walgreen Co (WAG.N) and increase competition with the likes of CVS Caremark Corp (CVS.N). "This combined entity is a much better entity than the individual parts," Jefferies & Co analyst Arthur Henderson said. "This combination from a growth standpoint, really improves the outlook. Once integrated, the growth is going to slow to some extent, but that may be several years away."
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 remained unchanged at $52.54. 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 14293286.
Medco Health Solutions, Inc. (Medco) is a healthcare company. Shares of MHS remained unchanged at $55.78. 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 12086571.
Walgreen Co. (Walgreen) together with its subsidiaries, operates a drugstore chain in the United States. Shares of WAG remained unchanged at $41.80. 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 55378.
CVS Caremark Corporation (CVS Caremark) is a pharmacy healthcare provider in the United States. Shares of CVS remained unchanged at $36.95. In the past year, the shares have traded as low as $26.84 and as high as $39.50. On average, 7801890 shares of CVS exchange hands on a given day and today's volume is recorded at 164915.
