With current business strategy (PBM) at risk and under scrutiny..our executives tried to be proactive and position this company to be in the insurance biz..They figured by having all these tools to utilize (retail, pbm, patient info) they can run a decent insurance risk company by making sure patients are healthy and avoiding hospital visits. Take in premiums and reduce insurance expenses for CVS as a company by utilizing all these tools. However, if this deal doesn't happen and Leon rejects it..there has to be a lot of work done to think of a different strategy..will be an interesting few weeks coming up.
7 replies (most recent on top)
when is this company going to start getting more business from the merger? I don’t want understand this strategy at all.
Something else to consider... IF this whole case were simply based on Judge Leon's "beef" with the Department of Justice, then hasn't he taken this far enough? And it's time to just approve the merger and move on? The fact that this case continues on, shows that this is FAR more than a beef the judge has. I think Judge Leon actually doesn't think that the deal cvs/doj made is good enough or goes far enough to address anti-competition issues. I would also go as far as to say I think Judge Leon has serious doubts as to whether or not this merger is even worth allowing in the first place. He might not have authority to do this, but he may try to move to block the merger outright!
To the poster who asked why I am convinced Judge Leon will rule against the merger... Just look at this case very closely. First off, he was p-ss-d off at both cvs and the DOJ right from day one of this case. And yet since this case began, cvs and the gov’t, have done nothing but continue to hammer home the idea that the deal they made is fine and Judge Leon should just approve it and that’s it. Cvs and the doj have challenged Leon’s authority to take the case as far as he has, and they have done NOTHING to appease him. At least 2-3 times during this process cvs and doj got raked over the coals by judge leon, and every motion they have filed, he has denied! Finally this last hearing he really got a chance to see the inner workings of this deal, and doesn’t seem to like it one bit! I could go on, but that’s the general idea.
I might be wrong, time will tell!
I think that we must go in this direction in order to stay relevant. Future will tell.
Why is this?
I'm convinced that Judge Leon will rule against the merger
Hope Larry didnt put all his eggs in one basket.
CVS board should dump this extememly poor leader.
Very interesting indeed!! My 2 cents, is that I'm convinced that Judge Leon will rule against the merger, and order the cvs and the gov't to renegotiate a new agreement from scratch. That will send the case to the appeals courts, and send the stock into the 40's. I don't know what might happen if this case ends up in appeals. Some say a different judge might overrule judge leon's decision, but what IF a judge friendly to Judge Leon gets the appeals case and rules right along with him? Then what? IF the appeals court rules in Leon's favor, that alone might be enough to completely sink the merger altogether.
Either way, if this gets to appeals courts, then expect NO merger decision/outcome until 2020 sometime. And the more this gets pushed back the more expensive it gets for cvs!