The background to this update is the acquisition of Medco Health Solutions Inc. by Express Scripts (more info.)
Both Medco and Express Scripts are large Pharmacy Benefit Managers (more info on PBMs) and the combined acquisition would result in a single PBM having a huge share of the market. This has led many to cite the merger as a monopolistic practice.
At the end of August, the Justice Department blocked a merger between AT&T and T-Mobile (video info here). Given the Justice Department's stance on this merger, some are wondering if it is a harbinger of their stances on other mergers which exist.(Cracking the Door)
A number of consumer advocacy groups are filing complaints against the merger, arguing that such a conglomeration would harm consumers. (More info.) Oddly enough NCPA is not one of the groups in this formal proposal.
Express Scripts is already taking the offensive and arguing that such a merger would not harm consumers/patients. (More info.)
My Feelings:
Coporations are under a tremendous amount of pressure to "knuckle under" to increase their bottom line. Basically: increase stock prices or investors will move to a different company. The larger you make a company, the higher the incentive is for the company either to perform ethically questionable activities to increase stock value or to throw its weight around to eliminate the competition, neither of which really helps patients or consumers. Given that the pharmaceutical development/distribution sphere is already highly convoluded and shrouded from public scrutiny, this only encourages larger companies to perform the above stated activites. Competition and economic destruction/creation is good, so long as the playing field remains transparent and balanced. If a few select companies get special privilages due to their size or political power, its the same as a sports team cheating in a game, and the referees looking the other way.
