Anna Wilde Mathews and Jonathan Rockoff authored Megadeal Unites Drug Rivals in an article published on WSJ.com on July 22, 2011. The article discusses the merger of two benefit companies pharmaceutical companies, Express Scripts Inc. and Medco Health Solutions Inc., as well as the ramifications of the merger on the health care industry. This strategic merger is expected to impact the pharmacy benefit manager (PBM) market, influencing drug costs and channels and possibly raising antitrust concerns. Key figures in this article include the merging PBM companies Express Scripts Inc. and Medco Health Solutions. Inc. Their competing PBM companies include UnitedHealth Group Inc. with its OptumRx pharmaceutical unit, Walgreen Co. and CVS Caremark Corp. These PBM companies compete for contracts with employers and health plans. Thomas Gryta defines pharmacy benefit managers as companies that "process prescriptions for groups that pay for drugs, usually insurance companies or corporations, and use their size to negotiate with drug manufacturers and pharmacies." (2011) Pharmacy benefit managers serve as liaisons between payer companies and health system variables. Their revenue comes from service fees related to filling prescriptions, running mail-order pharmacies, and negotiating cost reductions with pharmaceutical companies. This consolidation, as well as others in the health services sector, is part of a desire to reduce costs and therefore increase revenues. By combining purchasing power and control over a significant percentage of the pharmaceutical industry, PBMs can negotiate reductions in drug costs for themselves and their consumers. They can source cheaper generic drugs from generic manufacturers, negotiate discounts and distribute...... middle of paper ...... benefits the industry. Works cited Gryta, T., (July 21, 2011). What is a “pharmacy benefits manager”? Retrieved from http://online.wsj.com/article/SB10001424053111903554904576460322664055328.html#mjDropdownKotler, P. and Keller, KL (2009). A framework for marketing management: integrated with PharmaSim. Upper Saddle River, NJ: Pearson Prentice Hall. Mathews, A. and Rockoff, J., (July 22, 2011). Megadeal unites drug rivals. Retrieved from http://online.wsj.com/article/SB10001424053111903554904576459924273283808.htmlNational Association of Community Pharmacists (2011). Pharmacists: Proposed Express Scripts-Medco merger would reduce competition and increase health care costs. Alexandria, Virginia: Author. Retrieved from http://www.ncpanet.org/index.php/news-releases/1053-pharmacists-proposed-express-scripts-medco-merger-would-reduce-competition-and-raise-health-care-costs