Sunday, August 05, 2018
Health care isn't so healthy: The fates of two giant health care mergers are suddenly in question. Drug store chain CVS wants to buy insurer Aetna, but the California Insurance Commissioner wants the Justice Department to block the $69 billion deal, citing concerns that prices will go up and competition will decrease. Another insurer, Cigna, hopes to buy pharmacy benefits manager Express Scripts for $67 billion. However, there were reports last week that activist investor Carl Icahn has taken a stake in Cigna, with the hopes of convincing shareholders to vote against the Express Scripts merger on August 24.
Amazon is creating a health care company along with JPMorgan Chase and Warren Buffett's Berkshire Hathaway. Amazon -- who else? -- also announced in June that is buying online pharmacy PillPack, which already has pharmacy licenses in all 50 states. Shares of CVS and its rival Walgreens both plunged the day of the PillPack acquisition.
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