Drug Deal of the Year

CVS Pharmacies have agreed to merge with pharmacy-benefit manager Caremark Rx, creating a drug-dispensing juggernaut that can lean on pharmaceutical companies for lower prices, the Washington Post writes.

CVS has two locations below the Beltway in Silver Spring--in Montgomery Hills and at The Blairs, with another outside the Beltway at Four Corners. Caremark manages the county's drug discount program for residents who lack complete pharmaceutical coverage.

The merger gives CVS and Caremark more leverage over pharmaceutical companies, one bean counter tells the Post. "It's likely to lead to more transparent pricing and keeping prices down," says Mitchell Corwin, an equity analyst with Morningstar.

However, Helen Darling, of the nonprofit National Business Group on Health, worries that CVS and Caremark may not pass along the savings to consumers. She tells the Post that the newly merged companies may choose to pocket the spare change instead.

This merger comes one month after Wal-Mart announced its $4 generic drug giveaway. Target says it will also reduce prices for generics at its pharmacies.

Photo courtesy of Reuters.

"CVS, Drug Benefit Manager to Merge" (Washington Post)