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Consolidation in Health Care E-Commerce

Executive Summary

Consolidation continues at a frenzied pace in health care e-commerce, with the Web MD/Healtheon merger and CVS' acquisition of online pharmacy soma.co. The Healtheon/WebMD deal is certainly attention grabbing, but the new company's ultimate success will depend largely on Healtheon's ability to get physicians to buy its connectivity offerings. CVS' purchase of Soma.com is probably a harbinger of the limited future for pure play internet pharmacies.

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