Several States Contemplating Lawsuits to Prevent Express-Scripts/Medco Merger


Several States Contemplating Lawsuits to Prevent Express-Scripts/Medco Merger

by Dan Brecher

Several states, including New York, are said to be contemplating legal action to prevent Express Scripts Inc.’s proposed acquisition of Medco Health Solutions Inc. The $29.1 billion deal would create the largest U.S. pharmacy-benefits manager.

Section 7 of the Clayton Act specifically prohibits mergers and acquisitions when the effect “may be substantially to lessen competition, or to tend to create a monopoly.” The key question is whether the proposed merger is likely to create or enhance market power or facilitate its exercise. Issues like higher prices, fewer or lower-quality goods or services, or less innovation are often considered as well...

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Daniel Brecher, Scarinci Hollenbeck | Attorney Advertising

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