MHS Medcohealth Solutions Common Stock

Pharmacy-benefit managers Express Scripts Inc. (ESRX) and Medco Health Solutions Inc. (MHS) said Wednesday their planned deal could close as early as next week, indicating they believe they are close to securing regulatory approval.

The companies have been waiting for a green light from the Federal Trade Commission amid strong opposition from pharmacy trade groups and consumer advocates. The Wall Street Journal reported earlier this month that the FTC appeared increasingly unlikely to block the deal, but still had some concerns about the combination, and that talks were taking place to resolve them.

Express Scripts--which aims to acquire Medco in a cash-and-stock deal valued at about $29 billion when first announced--declined to comment on the status of the FTC discussions. But both companies said in regulatory filings that they may be in a position to close the deal as early as the week of April 2, "subject to satisfaction or waiver of the remaining closing conditions."

Shares of Express Scripts rose 4.6% to $55.65 in premarket trading while shares of Medco rose 5.6% to $72.85. While Medco shares traded far below the planned purchase price after the deal was announced, indicating doubt about whether the companies could win over antitrust regulators, the gap has narrowed significantly as the companies progress toward completing the deal. As of Tuesday's close, the deal price was 4.2% above Medco's price.

The companies on March 12 said they were working with the FTC to secure approval for the planned deal, which they expected at that time to complete in the "earlier part" of the second quarter.

Pharmacy-benefit managers, or PBMs, handle drug benefits for corporations and health plans. The planned deal will create the industry's biggest company.

-By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com

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