Express Scripts wins Antitrust Clearance

Mon, Apr 2 2012 (Reuters) — Express Scripts won U.S. antitrust clearance on Monday for its purchase of rival Medco Health Solutions following a contentious eight-month review, creating the clear leader in managing prescriptions for Americans.

The U.S. Federal Trade Commission announced it had closed its investigation into the roughly $29 billion deal, first announced in July, that combines two of the three largest U.S. pharmacy benefit companies, or PBMs. Separately, the companies announced they completed the deal.

Express Scripts shares rose 3.1% in Monday trading on Nasdaq. Before Monday's trading session, Medco shares were converted into Express Scripts shares and cash, based on terms of the deal.

Acquiring Medco more than doubles Express Scripts revenue base, and makes it significantly bigger than its closest rival CVS Caremark in terms of processing prescriptions.

PBMs like Express and Medco are supposed to cut the cost of medicines for their employers and health plan clients, in large part by encouraging more use of generic drugs.

But with generics already comprising about 75% of prescriptions, the combined company is going to need to show other ways they can give value to customers, says Jefferies & Co analyst Arthur Henderson.

"It is a space that is radically changing, and it is going to continue to radically change," says Henderson. The merger, he adds, "will give them more tools to work with to figure out how to continue to deliver lower costs to their customers."

Cut Rx Costs with a Pharmacy Benefits Program

If your business self-funds its employee health insurance, Barham Benefit Group can help you--and your employees--save money on prescription drugs by taking advantage of a new pharmacy purchasing coalition/benefit management program. We can show you a new and innovative pharmacy program that delivers cost savings along with advanced prescription management capabilities for self-funded clients.

The size and negotiating strength of the pharmacy purchasing coalition allows members to take advantage of volume discount pricing and the most generous manufacturer rebates available.

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To learn more about how your company can take advantage of this program, call Barham Benefit Group at (217) 356-1978 or email jab@barhambenefit.com.