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Express Scripts mounts hostile offer for CaremarkRx
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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 on the hostile offer from USA Today
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Comments
By smjacob | Posted 6:17pm | August 5, 2007
If CaremarkRx will accept Express Scripts' offer than that would make Express Scripts the biggest pharmacy with monopole perspectives. This should concern the average buyer since the competition between the two has led to the constant price drop for drugs and treatments. If one of them assimilates the other than the price drop would stop and the only advantaged party would be Express Scripts. The other pharmacies including the pharmacy online companies would simply align their prices to Express Scripts' prices.
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