Glaxo Mckesson: A Deal Or Just Talk?

Drugmaker Glaxo is after McKesson's PCS pharmacy-benefits-management unit. But its game plan is unclear. In two days, McKesson stock soared 12%, to 807 8 on May 10, on a report that Glaxo was negotiating to buy the division. It fell the next day on talk that the companies simply would sign a strategic agreement. Neither side would comment, but a deal wouldn't be much of a surprise: Drugmakers want benefits managers such as PCS to ensure that their brands are chosen among equivalent drugs. That's why Merck bought Medco, and why SmithKline is buying DPS.

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