Medco Health Solutions Inc. is seen as the lead bidder for Aetna Inc.’s pharmacy benefit manager in an auction that has drawn scant interest, Reuters reported, citing sources.
Aetna hired Bank of America Corp. and Credit Suisse Group AG to run the sale of the business, sources previously told Reuters.
Pharmacy benefit managers (PBM) administer prescription drug benefits for employers and health plans and operate large mail-order pharmacies.
The auction has sparked interest from New Jersey-based Medco and CVS Caremark Corp., sources said. The auction may ultimately conclude without a deal if Aetna fails to get the right price, sources said.
Medco was viewed as the lead bidder due to the strategic fit of the unit and its ability to pay for the deal without the need for significant financing, sources said.
Medco could not be immediately reached for comment.
Aetna declined to comment on the auction, citing company policy not to comment on rumors or speculation.
Analysts have said pharmacy chain Walgreen Co., which in April opened a regional distribution facility in Windsor, also could be a potential bidder. Walgreen could not be immediately reached for comment.
Last month, Medco said it was willing to spend billions of dollars on acquisitions and had unprecedented financial flexibility to make deals.
