Mail-Order Giant Medco Courting Drug Firms

Medco Containment Services Inc., the largest provider of mail-order prescription drugs to members of health plans, said Tuesday that it has been talking to several pharmaceutical companies about a linkup.

Although speculation mounted that industry giant Merck & Co. was a suitor, analysts said an acquisition by the drug company was unlikely. Merck was silent.

Investors, hedging their bets, bid Medco’s stock up anyway, and it gained $1.375 to close Tuesday at $30.125 in NASDAQ trading.

Medco, based in Montvale, N.J., said it “has been engaging in strategic talks with several pharmaceutical companies.”