2.Did the timing of the proposed merger between Express Scripts and Medco help or hurt the firms in obtain regulatory approval? Be specific.
3.Speculate as to how the Express Scripts-Medco merger might influence the decisions of their competitors to merge? Be specific.Answer: The approval of regulators of this transaction could serve as a “green light” for other PBMs to feel that they would also receive merger approval if they were to pursue this strategy. In addition, increasing scale may be a requirement for future success as a PBM. Scale is necessary to achieve negotiating leverage with drug manufacturers, to provide customer support services, and to finance and operate geographically dispersed mail handling operations. Consequently, increasedconsolidation through M&A may be a natural result of this regulatory ruling.Gaining Regulatory Approval Often Requires Concessions By Merger PartnersKey Points:Regulators often consider market concentration when determining whether an M&A will drive up prices and reduce consumer choice and product/service quality.To gain regulatory approval, acquirers often are compelled to sell assets to another firm to either