Insurer giant UnitedHealthcare is close to a deal to buy pharmacy operator Genoa, becoming the latest insurer to expand into the pharmacy market, according to a report in Axios.
The news comes as other insurance giants are making moves to buy or merge with either pharmacy chains or pharmacy benefit managers, which are middlemen that operate drug plans for insurers. Insurer Aetna is in talks to merge with CVS and insurer Cigna wants to buy pharmacy benefit manager Express Scripts.
Genoa Health operates about 400 pharmacies that offer services in community mental health centers, Axios said. The company also offers outpatient telepsychiatry and medication management services, Genoa’s website said.
The private equity firm Advent International currently owns Genoa, but Bloomberg reported on Tuesday that the firm is trying to sell the company.
UnitedHealthcare and Genoa did not return requests for comment as of press time on the sale.
The move by insurers to merge or buy PBMs or pharmacies comes as retail giant Amazon is looking to get into the healthcare market. Amazon bought the online pharmacy PillPack for $1 billion earlier this year.
But the deals have gotten stiff opposition.
The major doctor’s group American Medical Association opposes the CVS-Aetna merger on the grounds that it could hinder competition and lead to higher prices. The group asked the Department of Justice to block the merger. California’s top insurance regulator is also asking the DOJ to block the deal.
Activist investor Carl Icahn also urged Cigna investors to block the $60 billion purchase of Express Scripts because the insurer is “drastically overpaying.”
