RE: CVS and Caremark Rx Unveil Stock-Swap Deal
Dew et al,
The news caught myself and others a little off-guard when we heard about this. I have the same type of reservations about this merger as I did when Merck bought Medco in the 90's. In the Merck-Medco case, a supplier controlled the supply, formulary approval and with mail order, the final distribution of the drug to the patient. The FTC didn't seem to have a problem, although history shows that our worries over the potential abuses from the direction of formulary decisions to Merck's drugs had been legitemate. I don't forsee the FTC having a problem with this merger either.
CVS maintains that there will be no exclusive contracts nor preferred reimbursement, and that they will strive to make the PBM industry more transparent. One pharmacy spokesman said that if CVS actually does make changes to the industry, then the merger could be good for everyone. I will believe that when I see it.
Hope all is well in your world,
RPh
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