How Did Medco Study And Analysis
Merck Acquisition of Medco Study and Analysis
Abstract
Corporate mergers and acquisitions (M&A) have become popular across the globe
during the last two decades due to globalization, liberalization, technological developments,
and competitive business environment (Fisher & Siburg, 2009). The synergistic gains from
M&A may result from efficient management, economies of scale, profitable use of assets,
exploitation of market power, and the use of complementary resources (Mitchell et al, 2004).
Theoretically it is assumed that mergers improve the performance of the acquiring firm due to
increased market share and synergy impact.
This paper reviews the acquisition of Medco Medco Containment Services, Inc.
(Medco) …show more content…
economy, including jobs directly in biopharmaceutical companies, jobs with vendor companies in the broad biopharmaceutical supply chain, and jobs created by the economic activity of the biopharmaceutical industry workforce.
The biopharmaceutical sector is one of the most research and development (R&D)-intensive in the United States, with companies investing more than 10 times the amount of R&D per employee than all manufacturing industries overall.
The U.S. market is the world’s largest free-pricing market for pharmaceuticals and has a favorable patent and regulatory environment. Product success is largely based on competition in product quality, safety and efficacy and price. U.S. government support of biomedical research, along with its unparalleled scientific and research base and innovative biotechnology sector, make the U.S. market the preferred home for growth in the pharmaceutical industry.
The pharmaceutical market in general is consisting of many stockholders and it consist of many layers and markets; the primary market where the producing companies is selling the products to …show more content…
Merck & Company and Medco Containment Services Incorporated Executives have various point of views
regarding this acquisition, some of Merck executives identify Medco 's extensive database as the key factor
motivating this acquisition. Medco maintain a computer profile of 33 million customers, amounting to 26% of all
people covered by a pharmaceutical benefit plan. Medco clients include 100 fortune 500 companies, federal and
state benefit plans, and 58 blue cross/ blue shield groups and insurance companies. Numerous opportunities
exist for Merck to utilize the information contained in Medco 's database, First the database will allow Merck to
identify prescriptions that could be switched from a competitor 's drug to a Merck drug. Merck pharmacists will
then suggest the switch to a patient 's doctor. This prospect of increasing sales is enormous. second, the
database will allow Merck to identify patients who fail to refill prescriptions. This failure to refill needed
prescriptions amounts to hundreds of millions of dollars in lost sales each year. Finally Merck will be able to
Abstract
Corporate mergers and acquisitions (M&A) have become popular across the globe
during the last two decades due to globalization, liberalization, technological developments,
and competitive business environment (Fisher & Siburg, 2009). The synergistic gains from
M&A may result from efficient management, economies of scale, profitable use of assets,
exploitation of market power, and the use of complementary resources (Mitchell et al, 2004).
Theoretically it is assumed that mergers improve the performance of the acquiring firm due to
increased market share and synergy impact.
This paper reviews the acquisition of Medco Medco Containment Services, Inc.
(Medco) …show more content…
economy, including jobs directly in biopharmaceutical companies, jobs with vendor companies in the broad biopharmaceutical supply chain, and jobs created by the economic activity of the biopharmaceutical industry workforce.
The biopharmaceutical sector is one of the most research and development (R&D)-intensive in the United States, with companies investing more than 10 times the amount of R&D per employee than all manufacturing industries overall.
The U.S. market is the world’s largest free-pricing market for pharmaceuticals and has a favorable patent and regulatory environment. Product success is largely based on competition in product quality, safety and efficacy and price. U.S. government support of biomedical research, along with its unparalleled scientific and research base and innovative biotechnology sector, make the U.S. market the preferred home for growth in the pharmaceutical industry.
The pharmaceutical market in general is consisting of many stockholders and it consist of many layers and markets; the primary market where the producing companies is selling the products to …show more content…
Merck & Company and Medco Containment Services Incorporated Executives have various point of views
regarding this acquisition, some of Merck executives identify Medco 's extensive database as the key factor
motivating this acquisition. Medco maintain a computer profile of 33 million customers, amounting to 26% of all
people covered by a pharmaceutical benefit plan. Medco clients include 100 fortune 500 companies, federal and
state benefit plans, and 58 blue cross/ blue shield groups and insurance companies. Numerous opportunities
exist for Merck to utilize the information contained in Medco 's database, First the database will allow Merck to
identify prescriptions that could be switched from a competitor 's drug to a Merck drug. Merck pharmacists will
then suggest the switch to a patient 's doctor. This prospect of increasing sales is enormous. second, the
database will allow Merck to identify patients who fail to refill prescriptions. This failure to refill needed
prescriptions amounts to hundreds of millions of dollars in lost sales each year. Finally Merck will be able to