what companies have had vertical mergers?

research on 2 or 3 companies that experienced a vertical merger

1 Answer

  • Anonymous
    1 decade ago
    Favorite Answer

    An example is found on the Institute for the Study of Healthcare Organizations & Transactions site, Mergers and Alliances document.


    Here's an excerpt:

    Three of the mergers involved drug manufacturers and PBMs and represented vertical integration. In August, 1993, the drug manufacturer, Merck & Co., Inc. bought Medco Cost Containment Services, a PBM that covered 11 million lives, for $6 million. The second merger occurred in May, 1994 when SmithKline Beecham, another manufacturer, bought Diversified Pharmaceutical Services, Inc., a PBM that covered 38 million lives, for $2.3 billion. The final vertical merger occurred in July, 1994 when the drug manufacturer, Eli Lilly & Co, bought PCS Health Systems, Inc., a PBM covering 50 million lives, for $4 billion (Woolsey, 1994). [Recently, Merck-Medco Managed Care announced its intent to purchase the Los Angeles-based PBM, Systemed Pharmacy which, in 1995, had sales of $152 million. However, the FTC may intervene to block the merger (Muirhead, 1996)].

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