Express Scripts (ESRX.O) and Medco Health Solutions (MHS.N) may not be household names, but they have charted a 20-year rise to a leading role in lowering the cost of medicines for millions of Americans. Founded in the 1980s, the two companies -- now planning a $29.1 billion merger -- became major players in healthcare with the introduction of cheap generic versions of Merck & Co's (MRK.N) multibillion-dollar cholesterol drug Zocor in 2006. Both are pharmacy benefit managers, or PBMs, that negotiate and administer drug benefits for employers and health plans to help control rising healthcare costs. Combined they would command nearly one-third of the market, followed by CVS Caremark Corp (CVS.N). They helped push the adoption of generic Zocor by insurers, doctors and patients, and have been a driving force in the use of cheaper medicines. Generic drug use rates now top 70 percent. Generic Zocor "really created all sorts of new opportunities to find savings for clients by increasing generic penetration and transformed the PBMs into very important cogs in the pharmaceutical supply chain wheel," said Morningstar analyst Matthew Coffina.
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 5.36% or $2.815/share to $55.36. 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 77668096.
Medco Health Solutions, Inc. (Medco) is a healthcare company. Shares of MHS traded higher by 14.43% or $8.05/share to $63.83. 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 70852536.
Merck & Co., Inc. (Merck) is a global health care company. Shares of MRK traded higher by 1.66% or $0.59/share to $36.18. In the past year, the shares have traded as low as $31.06 and as high as $37.68. On average, 12985900 shares of MRK exchange hands on a given day and today's volume is recorded at 11361239.
CVS Caremark Corporation (CVS Caremark) is a pharmacy healthcare provider in the United States. Shares of CVS traded higher by 2.35% or $0.87/share to $37.82. 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 25869982.
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