In a deal that could have a far reaching effect on the drug retail market, Express Scripts has made a $26 billion hostile offer for the rival pharmacy benefit manager CaremarkRx. That bid is $5 billion higher than the offer CVS has made for CaremarkRx. The combined cash and stock deal took many on Wall Street by surprise. It includes high levels of corporate debt and evokes memories of the swashbuckling days of the 1980s, when a wave of hostile takeovers swept through the market. PBMs control about 75 percent of the drugs distributed in the United States and have helped drive down the prices paid for therapies.
- here's the report [1] on the hostile offer from USA Today
Related Article:
Genzyme to pursue rare hostile biotech bid. Report [2]
Links:
[1] http://www.usatoday.com/money/industries/health/drugs/2006-12-18-caremark-bid_x.htm?POE=NEWISVA
[2] http://www.fiercebiotech.com/story/genzyme-to-pursue-rare-hostile-biotech-bid/2006-08-31