A PYMNTS Company

CVS Deal For Signify To Face Antitrust Scrutiny

 |  September 6, 2022

CVS Health plan to buy healthcare services company Signify Health for about $8 billion will face a tough U.S. antitrust review even though the two companies do not compete directly in any markets, three experts said Tuesday.

High and rising healthcare prices, which have put even older drugs like insulin out of the reach of poorer people, have bedeviled US presidential administrations determined to slow the rising costs. The Federal Trade Commission has long emphasized health deals in its antitrust reviews, and has continued that under new Chair Lina Khan.

CVS announced Monday that it has agreed to buy Signify for $30.50 a share in cash plus approximately $400 million in appreciation rights, in a deal that would allow CVS to continue to patients in their homes to supply. CVS operates pharmacies, pharmacy services and the Aetna insurance plans.

“I would think in ordinary times this one might pass,” said Seth Bloom of Bloom Strategic Counsel and former general counsel of the US Senate Judiciary Committee’s Antitrust Subcommittee, who predicted the deal would be reviewed by the FTC.

“It will be difficult to get through an FTC run by Lina Khan,” he said.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.