WASHINGTON: US pharmacy operator CVS Health Corp’s move to buy health insurer Aetna Inc could shore-up CVS’ vulnerable pharmacy business and spur another round of dealmaking in an industry fearing Amazon’s arrival, analysts said.
Shares of Aetna, the third-largest US health insurer, closed down 3 per cent on Friday after closing 12 per cent higher on Thursday on reports of the deal. CVS Health was down 5.9 per cent.
CVS Health has made an offer to acquire Aetna for more than $200 per share, or over $66 billion, making it the biggest deal of the year.
“A potential combination would diversify CVS profit streams ahead of an Amazon entry and set the stage for a new healthcare-retail delivery model,” Morgan Stanley analysts wrote in a note.
Amazon.com Inc is planning to move into online prescription drug sales, multiple media reports have said, potentially posing an existential threat to brick-and-mortar pharmacies. — Reuters
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