Becker's Healthcare May 17, 2018
Cigna and Express Scripts are planning a merger for several reasons, one of them being “the potential entry into the healthcare industry of significant new participants,” according to a May 16 Securities and Exchange Commission filing.
Here are five takeaways from the document.
1. Cigna and Express Scripts evaluated other bidders before their deal, but none of those discussions resulted in significant decisions. The two companies announced their proposed $54 billion merger in March, which is undergoing Justice Department review.
2. Express Scripts and Cigna expect tougher competition in the health plan and pharmacy benefit management markets, including competition from a proposed $69 billion tie-up between CVS Health and Aetna.
3. One reason Express Scripts is aiming to shield itself...