It is said that CVS buys Aetna for $ 67.5 billion, remanufacturing sector –

It is said that CVS buys Aetna for $ 67.5 billion, remanufacturing sector


CVS Health Corp. will buy Aetna Inc. for about $ 67.5 billion, according to a person familiar with the matter, creating a healthcare and retail giant that will deal with everything from insurance to health insurance. corner pharmacy. [19659002] CVS will pay $ 207 per share to Aetna, consisting of $ 145 per share in cash and the rest in shares, according to the person, who spoke on condition of anonymity. That's a premium of 29 percent of Aetna's share price on October 25, a day before it was said that the companies were in talks.

The agreement, one of the largest healthcare mergers of the last decade, is expected to be officially announced later on Sunday, according to the person. Including CVS's badumption about Aetna's debt, the agreement will total $ 78 billion.

The agreement combines the largest chain of pharmacies in the US UU With the third largest health insurer, transferring Aetna's health insurance business to CVS's retail and drug plans. By doing so, you can take some of Aetna's 22 million customers to CVS pharmacies when they complete a prescription through CVS's drug plans. It will also give Aetna's insurance plans a more direct link in the place where customers receive care.

The agreement will be financed with a combination of cash and debt. Barclays Plc, Goldman Sachs Group Inc. and Bank of America Corp. have pledged to provide $ 49 billion in financing, the person said. It is expected to close in the second half of 2018 and generate savings of around $ 750 million, the person said.

After the deal closes, Aetna will operate as a separate unit managed by members of the current administration, the person said. The CEO of Aetna, Mark Bertolini, will join the CVS board, along with two other Aetna directors.

Amazon Lurks

occurs when the health sector is looking over the horizon at Inc., and how the company could shake the business of buying, distributing and selling medicines and medical products if it enters health care. The retail industry has been hit by the online giant. Amazon has not revealed its plans.

"One of the problems with the health care system is that it is very fragmented and there is very little coordination," said Steve Kraus, who invests in healthcare companies at Bessemer Venture Partners. "A good vertically integrated system that is less isolated is a good thing in my mind."

It could also trigger a new round of acquisitions as CVS and Aetna's competitors observe the remodeled landscape. On November 30, the CEO of Express Scripts Holding Co. said the company would be open to an agreement at the right price, although he was not actively seeking one.

"We do not need to sell to be very successful in the future, but we are always open to others who may suddenly conclude that they want what we have," Express Scripts CEO Tim Wentworth said in an interview. He also mentioned the possibility of partnering with Amazon in a drug distribution agreement.

More offers?

Express Scripts is just one company in a universe of drug plans, insurers and independent supply chain intermediaries. WellCare Health Plans Inc., Humana Inc. and Centene Corp. could become merger targets after the agreement between CVS and Aetna, according to Matthew Borsch, badyst at BMO Capital Markets. Drug distributors such as Cardinal Health Inc. or McKesson Corp., and retailers such as Walgreens Boots Alliance Inc. may also face pressure to find partners.

CVS, which operates around 9,700 retail stores and 1,100 medical clinics without an appointment, has been moving beyond the roots of the pharmacy for years. In 2007, he bought the pharmacy benefits manager Caremark Rx, a business that accounted for nearly half of the operating profit of the company based in Woonsocket, Rhode Island, in the third quarter. In 2014, CVS stopped selling cigarettes and added "Salud" to its name.

"Aetna has emphasized its desire to bring consumer attention closer," said Brian Tanquilut, an badyst at Jefferies, on October 26. . "The capabilities of CVS, including the Minute Clinic and the Coram home infusion business, could allow the health plan to improve health outcomes and reduce the cost trend."

Potential obstacle

Consolidation between providers and managers of health services is being consolidated. since insurers seek greater control over the way their consumers receive attention. But two proposed megamergers among insurers, including an agreement between Aetna and Humana Inc., were blocked this year on antitrust grounds, prompting companies to look beyond rival insurers to different types of health service companies for possible agreements.

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