Home / Business News / CVS closes in on deal to buy health insurer Aetna: source

CVS closes in on deal to buy health insurer Aetna: source

(Reuters) – CVS Health Corp (CVS.N) is shifting nearer to a greater than $66 billion money and inventory deal to buy health insurer Aetna Inc (AET.N) which may well be introduced as early as Monday, a source acquainted with the subject stated on Thursday.

FILE PHOTO: The CVS emblem is noticed at considered one of their retail outlets in Manhattan, New York, U.S., August 1, 2016. REUTERS/Andrew Kelly/File Photo

Shares of each corporations rose on the inside track, which used to be at first reported via the Wall Street Journal. CVS stocks have been up 2.7 p.c and Aetna stocks rose zero.7 p.c in overdue morning buying and selling.

The corporations are in complicated levels of negotiating a deal that will price Aetna at between $200 and $205 in line with percentage and can be comprised basically of money, the Journal stated. (on.wsj.com/2j5V1yn)

Sources instructed Reuters previous this month that the deal would price the corporate at greater than $200 in line with percentage.

The deal would mix CVS, one of the most greatest U.S. pharmacy advantages managers and drugstore chains, with Aetna, one of the most oldest health insurers, whose far-reaching industry levels from employer healthcare to govt plans national.

Healthcare consolidation has been a well-liked path for insurers and pharmacies, below drive from the federal government and massive companies to decrease hovering scientific prices.

Pharmacy receive advantages managers (PBMs) equivalent to CVS negotiate drug advantages for health insurance coverage and employers, and feature in contemporary years taken an more and more competitive stance in worth negotiations with drugmakers.

They frequently extract reductions and after-market rebates from drugmakers in change for together with their drugs in PBM formularies with low co-payments.

A tie-up with Aetna may give CVS extra leverage in its worth negotiations with drug makers.

Additional reporting via Ankur Banerjee in Bengaluru; Editing via Savio D’Souza and Marguerita Choy

Our Standards:The Thomson Reuters Trust Principles.

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