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And Then There Was One

SB's decision to sell its DPS pharmacy benefit management business leaves Merck as the only drug company still owning its own PBM. It also creates a powerhouse PBM in the managed care marketplace.

SmithKline Beecham 's announcement that it was selling off its non-core businesses in clinical labs and pharmacy benefit management comes as no surprise and represents simply the latest in the dismantling of the broader vision of the pharmaceutical industry. SmithKline, along with Merck & Co.and Eli Lilly & Co. , prophesied five years ago. Lilly has already exited the PBM business with the sale of PCS Health Systems Inc. to drug store chain Rite-Aid Corp.[See Deal]; Merck seems the only long term player, but only because Medco remains profitable, rather than for any integral value to its main drug business.

More surprising, historically speaking, in the evolution of the PBM business has been the rise of St. Louis-based Express Scripts...

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