Drug retailers file suit to block merger facing congressional objections

Drug retailers sued Thursday to prevent a proposed merger between two giant pharmacy benefit managers that has prompted a groundswell of congressional opposition.

The trade groups representing chain drug stores and community pharmacists joined nine retail pharmacy companies in challenging the merger between Express Scripts and Medco Health Solutions. The Federal Trade Commission is currently reviewing the merger to make sure it doesn't violate federal anti-trust law.

"Community pharmacies have aggressively engaged in opposition to the merger — at the executive level through meetings and communications with the FTC and state attorneys general; and at the legislative level by testifying before the House and Senate," the trade associations said in a joint statement. "Engaging with the courts is another component in that process."

Express Scripts and Medco argue that their merger would help consumers save tens of billions of dollars a year on the cost of prescription medications through lower prices and better patient adherence to treatment. 

Critics, for their part, have been able to use the political clout of pharmacies, which are in every member's district, to raise concerns about a possible loss of choice for consumers if a giant benefit manager can further squeeze drug retailers. More than 80 members of Congress so far have weighed in with their concerns.

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