Express Scripts, Medco climb after report says FTC likely to approve deal

The Federal Trade Commission, or FTC, staff is expected to recommend that the regulator approve Express Scripts' (ESRX) proposed acquisition of its pharmacy benefit management rival, Medco (MHS), according to market intelligence journal MLex, which cited unnamed sources. However, the FTC may still mount a legal challenge to the deal, adds the publication. The agency has been challenging healthcare mergers, and has been especially vigilant in its regulation of the pharmacy benefit management sector, notes MLex. The issue is likely to be decided by FTC Chairman Jon Leibowitz, who worked as Senator Herb Kohl's leading antitrust advisor for years, the publication said. In mid-morning trading, Medco rose $1.39, or 2.28%, to $62.33, while Express Scripts climbed $1.45, or 2.91%, to $51.24.