On Monday, Express Scripts Inc acquired Medco Health Solutions Inc. under a deal of $29.1 billion. The deal was announced soon after the approval of Federal Trade Commission for the acquisition. The Federal Trade Commission held an investigation over the merger to gauge the impact of the acquisition on the market.
It has been informed that the merger of the two would give birth to a new company, which would be named as Express Scripts Holding Co. The deal would make Express Scripts Holding Co as one of the largest pharmacy benefits manager in the nation, as it would have the sole responsibility of filling 1.4 billion prescriptions a year for the employers and insurers.
It has come to light that about 213 million prescriptions out of 1.4 billion were filled at drug stores operated by Walgreen in 2011. The deal between Express Scripts Inc and Medco Health Solutions Inc. would prove beneficial for their rival Walgreen.
Walgreen is said to be competing Express Scripts over pricing. Earlier, the two companies were working together, but on 1st of January, they decided to part ways. The decision led to huge losses to Walgreen, which lost about
85% of the prescription that it filled will working with Express Scripts.
Walgreen is fearful that the deal would result in greater losses. Walgreen informed about its plans of filling 108 million prescriptions this year and 74 million in 2013. There are high chances of Walgreen losing its prescription because of the merger.
It has been informed that following the announcement of the merger, the shares of Walgreen rose by 2%. Walgreen is planning to strike a deal with Express Scripts Inc so that it could achieve its prescription targets of this year.