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Wednesday, October 26, 2011

Express, Medco voice confidence on deal, shrs jump, (NASDAQ: ESRX), (NYSE: WAG)

Express Scripts Inc and Medco Health Solutions Inc voiced confidence that their $29 billion merger would overcome regulatory concerns to close in the first half of next year, and shares of both pharmacy benefits companies rose sharply.The chief executives of the two companies made the remarks in separate briefings with analysts on Wednesday, where they discussed stronger-than-expected earnings results. Express also sought to assuage investor concerns about a contract dispute with top U.S. drugstore chain Walgreen Co .Taken together, the bullish view on the business helped shares of Express gain 13 percent. Medco's rose 9.4 percent."We would not have announced this combination if we were not confident in our ability to obtain the necessary regulatory approvals," Medco Chief Executive David Snow said. Express Scripts CEO George Paz also stood by the timeline for its acquisition of Medco.

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 12.79% or $4.92/share to $43.39. In the past year, the shares have traded as low as $35.69 and as high as $60.89. On average, 9721010 shares of ESRX exchange hands on a given day and today's volume is recorded at 14988335.

Walgreen Co. (Walgreen) together with its subsidiaries, operates a drugstore chain in the United States. Shares of WAG fell by 3.58% or $-1.21/share to $32.61. In the past year, the shares have traded as low as $32.00 and as high as $47.11. On average, 8438130 shares of WAG exchange hands on a given day and today's volume is recorded at 6890018.