Friday, October 31, 2014
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Judge: April 10 for hearing on request for injunction to stop Express Scripts-Medco deal

A federal judge Tuesday set April 10 for a hearing on a request for a preliminary injunction to halt Express Scripts' $29.1 billion acquisition of Medco Health Solutions.

Judge: April 10 for hearing on request for injunction to stop Express Scripts-Medco deal

Federal District Court Judge Judge Cathy Bissoon said Tuesday in Pittsburgh that she will hold a hearing April 10 to consider a request for a preliminary injunction to halt Express Scripts' $29.1 billion acquisition of Medco Health Solutions.

Attorneys for the National Association of Chain Drug Stores (NACDS), the National Community Pharmacists Association (NCPA), and nine retail pharmacy companies near Pittsburgh filed suit last week in federal district court, trying to stop the merger of the two pharmacy benefit manager (PBM) companies.

Express Scripts immediately completed the deal Monday morning after the Federal Trade Commission voted not to stop it on antitrust grounds.

The pharmacy groups then went into court Monday afternoon seeking a temporary restraining order and Bissoon listen ed to teams of attorneys on a conference call Tuesday.

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The disputed deal would push together the first and third largest PBMs, which run drug plans for employers (public and private) and fill mail order prescriptions.

The plaintiffs asked that Express Scripts "be ordered to hold separate Medco’s assets and operations after consummating the proposed acquisition and pending entry by the Court of a final judgment in this action," according to the suit.

Tuesday's Inquirer story is here, but folks had plenty more to say on debate around this $29.1 billion deal that touches millions of Americans whether they know it or not.

The NACDS, NCPA and pharmacies say they are mounting an "all-levels, all branches of government" approach to continuing the fight against Express Scripts Holding Co., the new name for the merged company.

"Community pharmacy has unsurpassed value in improving health and reducing costs across the board. We believe that this legal action will put further emphasis where it should be – on patients,” NACDS President and CEO Steven C. Anderson and NCPA CEO B. Douglas Hoey said in the statement.

The joint statement is here. Some Pennsylvania pharmacists were scheduled to be in Harrisburg Tuesday to make the case to legislators.

Philadelphia's pharmaceutical consultant Adam Fein said the numbers don't back up the assertion that independent pharmacies are dying.

Fein noted that there had been almost no change in the number of pharmacist-owned independent drug stores from 2000 to 2010 and that the mail-order segment had also lost market share. The segment gaining share was chain drug stores, such as CVS Caremark, and those run by retailers such as Wal-Mart.

Fein's blog post on this topic is here and there are links to other papers he has written on the subject.

Meanwhile, Steve Miller, the chief medical officer of Express Scripts, said the company's goals will be applied to the new business:

  • Drive savings by eliminating waste, fraud and abuse from the system.
  • Increase safety through drug utilization reviews, so patients don't get conflicting prescriptions from different doctors.
  • Improve adherence, meaning making sure that patients take the drugs that are prescribed for them so they avoid more expensive problems later.

"The greatest savings can be found in the drive for better adherence," Miller said. "About $300 million a year is wasted by patients not taking their medicine. Diabetics not well-controlled. Cancer patients giving up too early on first-line treatments. Multiple sclerosis patients not adhering to their prescription and ending up in the emergency room."

Where all of that gets tricky - and legally contentious - is who does that best, while staying in business and making a profit.

Express Scripts wants to handle all of the chronic disease care, such as cholesterol pills and diabetic supplies, and retail pharmacies to handle acute drugs and needs that are more difficult to respond to quickly by mail. The retail pharmacists say they can't make enough money doing only that and it creates gaps in knowledge about patients.

David Sell
About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

For Inquirer.com. Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at dsell@phillynews.com.

David Sell
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