Reported by the Wall Street Journal, CVS Health Corp. (NYSE: CVS) reportedly made a bid to acquire Aetna Inc. (NYSE: AET) for more than $200 a share or $66 billion, citing sources familiar with the matter.
Aetna shares surged 11 percent on Thursday shortly before close, but was down over 2 percent on Friday during trading hours.
Aetna is an American health care company that offers traditional and consumer directed health care insurance plans and related services, such as medical, pharmaceutical, dental, behavioral health, long-term care, and disability plans.
This deal would merge one of the nation’s largest pharmacy with the one of the nation’s largest health insurer. This would expands CVS’ business and open into the healthcare industry. The merger could also result in new deals and benefits for the business itself as well as its customers.
Pharmacy benefit managers (PBMs) such as CVS negotiate drug benefits for health insurance plans and employers, and have in recent years taken an increasingly aggressive stance in price negotiations with drugmakers, according to Reuters.
CVS’ bid for Aetna also may stem from the company trying to strengthen its position in the sector as other giants such as Amazon, as Amazon has been looking for ways to get into the healthcare market.
The bid also comes shortly after it was released that Amazon received approval for wholesale pharmacy licenses in certain states.
The moves toward value-based purchasing and consumerization are responsible for the integration of PBMs in health-care businesses, said RBC healthcare analyst Frank Morgan.
Aetna and CVS only started recently discussing the deal, and that the deal would be expected for few more weeks, according to the sources.
Aetna and CVS both declined to comment on the matter.