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Will Drug Prices Rise If CVS Buys Target's Pharmacy Business?

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If your pharmacist wears a red polo and khakis under their labcoat, you might be about to get a better deal on your prescriptions.

CVS today announced plans to buy Target’s in-store pharmacy and clinic business for $1.9 billion. Target currently runs over 1,660 pharmacies in 47 states, plus 80 clinics. Pharmacies will be renamed "CVS/Pharmacy," while clinics will be called "MinuteClinic."

Even though CVS is buying one of its competitors, the deal shouldn't raise antitrust concerns or prices, said healthcare industry economic analyst Dr. Sumanth Addanki, because their product ranges have little overlap.

"When you have two big companies like this, their relationship with suppliers and wholesalers is bound to improve," he added. And hopefully, "they would pass some of those savings along to the consumer."