Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Retirement Planning > Saving for Retirement

PBMs Clash Over CVS Deal

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

A big pharmacy benefit manager is trying to keep a competitor from wedding a giant retail drug store chain.

A unit of Express Scripts Inc., St. Louis, a huge PBM, says it will be trying to nominate 4 directors to the board of the smaller PBM, Caremark Inc., Nashville, Tenn., and wooing Caremark from CVS Corp., Woonsocket, R.I.

The Express Scripts offer is worth more than $25 billion and will pay shareholders about 13% more than the CVS deal, according to Express Scripts.

But Caremark says it already has permission from federal antitrust regulators to proceed with the CVS deal and is preparing to seek a shareholder vote on that deal.

Members of the Caremark board voted unanimously Sunday to reject the Express Scripts offer, Caremark says.

The move by Express Scripts to nominate directors to the Caremark board “is yet another attempt by Express Scripts to interfere with [the] merger agreement with CVS,” Caremark says.

Caremark Chairman Mac Crawford has described Express Scripts’ actions as an illustration of “its desperation to disrupt our merger with CVS due to fear of competition from a combined CVS/Caremark.”

Combining CVS and Caremark should lead to big savings and improvements for customers, Crawford says.

Caremark hopes to complete the CVS deal by March 31, Crawford says.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.