TRIP

Skepticism grows around Medco/Express Scripts deal

Reuters Health News, 2012

LONDON - The euro and European stock markets edged higher on Tuesday as traders grew hopeful a resolution could be found to enable a second bailout deal for Greece, although poor results for some top European firms rekindled fears about the impact of the crisis.
WASHINGTON - The United States created jobs at the fastest pace in nine months in January and the unemployment rate unexpectedly dropped to a near three-year low, giving a boost to President Barack Obama.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.
WASHINGTON (Reuters) - Objections to Express Scripts' $29 billion plan to buy rival pharmacy benefits manager Medco Health Solutions are accumulating as U.S.
The Food Marketing Institute, which represents the biggest grocery chains, sent a letter to the Federal Trade Commission on February 2 saying the merged company would be able to cut payments to supermarket pharmacies that already operate at very tight margins.
"(We) ask the commission to bring an enforcement action to enjoin the merger," the association said in its letter to FTC Chairman Jon Leibowitz, which was seen by Reuters on Monday.
The supermarket heavyweights join consumer groups and community pharmacies that have come out against the deal.
A source familiar with the deal said that key people at the FTC believe it should be stopped but want to ensure they have adequate evidence to win a court fight to stop it.
A decision on whether or not to sue is expected by the end of February or early in March, the source said.
Shares of Medco fell 9 percent to $57.88 on Monday after Reuters reported the grocery chain letter and the inclination of key FTC officials to block the deal.
Express Scripts spokesman Brian Henry said: "We remain confident the merger will close in the first half of 2012." Pharmacy benefits managers (PBMs) like Medco and Express Scripts are hired by insurance companies to handle prescription drug plans.