Investors In Health Care Mergers Cheer Judge’s OK Of AT&T-Time Warner Deal
An analyst said that despite the differences between the cable and health care industries, the judge's decision against the
Judge
Leon made it clear that the government had failed to prove any of its arguments against the merger during the six-week trial.
Leerink analyst
While the cable marketplace is different from the managed care and pharmacy benefits management businesses, "the decision is favorable for the two large ... mega-mergers," she said.
The judge's decision backing the AT&T-Time Warner tie-up will have the effect of "meaningfully increasing the probability that the two vertical mega-mergers will close," Gupte said.
An argument in favor of the Cigna-Express Scripts deal is that it could help control health care costs to keep pace with consolidation in the insurance and pharmacy benefits management industries.
Analysts have said regulators passing judgment on the CVS-Aetna deal may seek "remedies" such as divestiture before a potential tie-up is approved.
Federal regulators blocked Aetna's attempt last year to buy rival
A merger with CVS provides a different avenue for expansion, joining Aetna with a business where it does not have a presence.
Likewise, a federal judge nixed a proposed
CVS rose nearly 2 percent, to
Shares of
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