Express Scripts and Medco Stock Drop on Lawsuit

March 20, 2012

Two major healthcare companies' stock is dropping after reports there might be lawsuits pertaining to their planned merger.Express Scripts and Medco Health have both lost over 1.5% after Bloomberg News reported that five states may take legal action to block their planned merger. State officials say they are worried the merger wouldn't protect against rising drug prices and fewer pharmacy services. The $29.1 billion deal has yet to be approved by the Federal Trade Commission but if approved, New York, California, Pennsylvania, Ohio and Texas are planning on filing against it immediately.Including those 5 states, up to 20 more are conducting their own probes to see if the deal will result in antitrust violations.