Is this good news for Walgreens or other retail pharmacies?Does it give CVS more durability and flexibility through diversification? Does this mean more pressure on Aetna customers to get their drugs from CVS?
Pharmacy stocks have been badly spooked lately by swirling expectations that Amazon will eventually get into the business of filling prescriptions. Is this the reason behind this deal, as CVS braces for the kind of shakeup Jeff Bezos has brought to other pure retailers? Does that make the Aetna deal at least partly “defensive,” and it could slow Amazon’s plans? For instance, Aetna customers might be incentivized to buy their pills from CVS, while CVS is the largest pharmacy in the country? How do you see this? who is winning and who is losing? Think form the all stakeholders’ (competitors, customers, health care system, and patients) perspectives.
Also, the Justice Department earlier this year blocked a merger between Aetna and Humana, saying it would reduce competition. Regulators also scaled back another merger, between Walgreens and Rite-Aid. Why the CVS-Aetna merger is seen very positively now?
Do the merging companies compare themselves to Border’s Inc. and how Amazon has impacted it? I have attached a back ground on what happened to Border’s Inc.