The Federal Trade Commission is investigating the antitrust implications of a proposed merger between Caremark Rx, Nashville, Tenn., and AdvancePCS, Irving, Texas. The two pharmacy benefit managers, which in September announced plans to merge, said that on Friday they received a so-called "second request" for information under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The request extends the waiting period for FTC review of the deal, which is worth approximately $6 billion. Both companies said they intend to work with the FTC and respond promptly to the request. If achieved, the merger will consolidate the recently scrutinized pharmacy benefit manager market into three major players, including Express Scripts and Medco Health Solutions. Under the terms of the agreement Caremark will acquire all of Advance PCS' stock. With combined annual revenues of $23 billion, the companies managed more than 600 million prescription claims in the 12 months ended June 30. -- by Cinda Becker
FTC investigates merger of Caremark, AdvancePCS
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