Flaws in ESI/Medco efficiency claims exposed

20 February 2012

David Balto, an antitrust attorney in Washington DC, USA, and former Policy Director of the Federal Trade Commission, released a white paper yesterday exposing the flaws in efficiency claims made by US pharmacy benefit managers (PBMs) Express Scripts (Nasdaq: ESRX) and Medco Health Solutions (NYSE: MHS), with respect to their proposed merger.

Last year, the two pharmacy benefit management (PBM) companies announced plans to merge in a $29 billion deal (The Pharma Letter July 26, 2011) that is currently being reviewed by the Federal Trade Commission to determine whether it complies with antitrust law. A final decision is expected early this year.

Over $1 billion savings to consumers claimed

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