companies, 29 retail pharmacy chains, 30 and biotechnology firms31 have recently explored or contemplated mergers and acquisitions or joint ventures. For instance, in July of 2015, Israeli drug maker Teva Pharmaceuticals Industries Ltd. agreed to buy the generic drug manufacturer Allergan Pic for approximately $40.5 billion in cash and stocks. 32 Third, there has been consolidation in the third-party payer marketplace. 33 Not only have general health insurers been active in mergers and acquisitions, but the giants of the industry are also consolidating. 34 For example, one can look to the 2015 purchase of Cigna Corp. by previous rival Anthem Inc., 35 and Aetna’s acquisition of previous competitor Humana. 36 As summarized by one analyst, “[d]eals among the nation’s largest health insurers in recent weeks have been almost head-spinning. But whatever the details, if the combinations are finalized, the result will be an industry dominated by three
combine . . . ”). 29. See Robert Dominguez, Major Pharmaceutical Companies Start 2015 with Mergers, N. Y. DAILY NEWS (Jan. 12, 2015), http://www.nydailynews.com/news/national/major- pharmaceutical-companies-start-2015-mergers-article- 1.2075360; see also John L. LaMattina, The Impact of Mergers on Pharmaceutical R&D, 10 NATURE REVS. DRUG DISCOVERY 559 (2011) (discussing “the era of large mergers in the pharmaceutical industry” and its negative impact). 30. See PengCheng Zhu & Peter E. Hilsenrath, Mergers and Acquisitions in U.S. Retail Pharmacy, 41 J. HEALTH CARE FIN. 1 (2014) (identifying recent trends to merge retail pharmacy chains), http://healthfinancejournal.com/index.php/johcf/article/view/20/22; see Daniel Weiss, FTC Approves Express Scripts-Medco Merger, PHARMACY TIMES (Apr. 3, 2012), http://www.pharmacytimes.com/news/FTC-Approves-Express-Scripts-Medco-Merger (discussing the merger of Express Scripts and Medco, two prominent retail pharmaceutical chains). 31. See generally Farah H. Champsi, Biotechnology Mergers and Acquisitions, 16 NATURE BIOTECH. 61, 61-62 (1998), http://www.nature.com/bioent/2003/030101/ full/ nbt0598supp_61.html (contemplating the benefits of mergers and acquisitions in the biotech industry). 32. Chitra Somayaji, Teva to Buy Allergan’s Generic-Drug Business for 40. 5 Billion, BLOOMBERG (July 27, 2015, 3: 34 AM), http://www.bloomberg.com/news/articles/2015-07- 27/teva-to-buy-allergan-s-generic-drug-business-for-40-5-billion. 33. See Robert Pear, House Hearing on Insurers’ Mergers Exposes Health Care Industry Divide, N. Y. TIMES (Sept. 10, 2015), http://www.nytimes.com/2015/09/11/us/house-hearing- on-insurers-mergers-exposes-health-care-industry-divide.html (discussing the differing opinions over increasing consolidation in the health care provider and insurer markets). 34. See e.g., José R. Guardado et al., The Price Effects of a Large Merger of Health Insurers: A Case Study of UnitedHealth-Sierra, 1 HEALTH MGMT. POL’Y & INNOVATION 16, 18 (2013), available at http://www.hmpi.org/pdf/HMPI %20%20Guardado,%20Emmons,%20Kane,%20Price%20Effects%20of%20a%20Larger% 2 0Merger%20of%20Health%20Insurers.pdf (referring to the United-Sierra merger). 35. Contingent on approval by federal and state regulators. See Anna Wilde Mathews & Liz Hoffman, Anthem Agrees to Buy Cigna for $48.4 Billion, WALL ST. J. (July 24, 2015, 6: 55 PM), http://www.wsj.com/articles/anthem-agrees-to-buy-cigna-for-48-billion-1437732331. 36. Contingent on approval by federal and state regulators. See Humana Inc., Proxy Statement (Schedule 14A) (Aug. 10, 2015), http://www.sec.gov/Archives/edgar/data/ 49071/000119312515285879/ d67897dprem14a.htm.