Merck/Medco Case Analysis Essay

3123 Words13 Pages
CASE 5.1: MERCK ACQUISITION OF MEDCO Abstract Corporate mergers and acquisitions (M&A) have become popular across the globe during the last two decades due to globalization, liberalization, technological developments, and competitive business environment (Fisher & Siburg, 2009). The synergistic gains from M&A may result from efficient management, economies of scale, profitable use of assets, exploitation of market power, and the use of complementary resources (Mitchell et al, 2004). Theoretically it is assumed that mergers improve the performance of the acquiring firm due to increased market share and synergy impact. This paper reviews the acquisition of Medco Medco Containment Services,…show more content…
The products of Merck & Company include Antivenin (for the treatment of black widow spider bites), Cosopt (reduces intraocular pressure in people with glaucoma or ocular hypertension), Cozaar/Hyzaar (used to treat hypertension, to reduce the risk of strokes and to treat diabetic nephropathy), Crixivan (a protease inhibitor HIV medication), Fosamax (osteoporosis medication), Singulair (an asthma medication that blocks leukotrienes), Recombivax HB (a vaccine that protects against hepatitis B), Zocor (a cholesterol-lowering statin), and Zostavax (a vaccine for prevention of shingles in adults older than 60 years of age)(Datamonitor, 2004). The Medco Containment Services Inc. is the largest prescription benefit management company (PBM) and marketer of mail-order medicines in the United States. Medco is listed on the New York Stock Exchange (NYSE) under the ticker MHS and it is member of the Standard & Poor 500. It is ranked number 14 on the 2004 Fortune 500 list. The company controls more than 50 percent of one of the fastest growing segments of the health-care industry. Through its mail service pharmacies the company delivers prescription drugs nationwide at lower costs than retail. Through its wholly owned Paid Prescriptions Inc., claims are processed through 55,000

More about Merck/Medco Case Analysis Essay

Get Access