The company Aetna confirmed on this Thursday that it has finally decided to sell the Medicare part D business of the company to Wellcare Health Plans Inc., and this is amidst the probable merger of the company with CVS Health Corp. This particular deal is expected to be highly effective, at the end of 2018. The company has said that the purchase price is not really material, in one of the regulatory filings. This indeed is a huge step in this field, as this $70 billion deal is going to unite the health insurance giant, which is the third biggest in the world, with the pharmacy benefit company.
According to the reports from the Wall street Journal, the Justice Department antitrust enforcers have given the deal a green light. The company CVS announced in one of the SEC filings on this Thursday that the company is still expecting that the deal with Aetna will be closed in the earlier part, as far as the fourth quarter is concerned.
This particular deal between the two companies is quite unique and surprising as well, as both of these companies operate in businesses that are very different from each other, and the only direct overlap between these is the prescription-drug program, which is called as Part D. The company CVS has the largest share in the market, in the drug-plan business, and the company has as many as 6.1 million members worldwide. On the other hand, the company Aetna is the fifth largest seller of Part D, and has nearly 2.2 million members in the entire world, as per the reports from Wells Fargo. This deal will now need some approvals from the state officials as well, before it can go further ahead, and it seems that some of them have already approved the same.
Sasha Farrell is a privileged and versatile content writer and editor in the domains of Pharma, Health, and Medical. Before getting into the writing world, Sasha was working as an STM editor for few renowned authors and publications, which gave head-start to rifle through the Pharma, Health, and Medical Innovations.