Express Scripts Inc will buy rival Medco Health Solutions Inc for $29.1 billion in cash and stock to create a powerhouse in managing prescription drug benefits in the United States.
Express Scripts will pay $71.36 per Medco share, a 28 percent premium to its adjusted closing price on Wednesday. Medco shareholders will receive $28.80 in cash and 0.81 shares for each Medco share they own, according to the terms of the deal.
The deal between two of the "Big 3" pharmacy benefit managers would create a clear industry leader and could encounter antitrust hurdles. It also comes as Medco has lost two key accounts and said on Thursday that a third -- with insurer UnitedHealth Group Inc -- would not be renewed.
"Given the attrition risk Medco faces over the next few years, in regard to the UnitedHealth contract going away in 2013, and other publicized losses, it's a good deal for Medco and their shareholders.
Source: www.reuters.com
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