Thu, Feb. 18, 10:35 AM
- Behemoth pharmacy benefits manager Express Scripts (ESRX -0.7%) has apparently made scant progress in its contentious negotiations with its largest customer, Anthem (ANTM +1.1%), over drug discounts. In its earnings call yesterday, CEO George Paz said he "has no clue" where the $3B that Anthem says it is owed in additional prescription drug savings under their 10-year contract comes from.
- The risk that ESRX may lose its largest client when their contract ends after 2019 has weighed on its stock price. Shares are down over 20% this year. Even if they resolve their differences, though, Anthem may still bid adieu if its merger with Cigna (CI +0.4%) goes through (likely) and it decides to manage prescriptions internally, a move that UnitedHealth (UNH +0.7%) has already done.
- Anthem represents 14% on ESRX's revenue but much less of its profit. It processed almost 1.3B claims last year and will most certainly process over 1B claims annually beyond 2019 exclusive of Anthem.
- Previously: Anthem to acquire Cigna for $54.2B (July 24, 2015)
Wed, Feb. 10, 3:42 PM
- Novartis (NVS +0.5%) inks a pricing deal with Cigna (CI +0.9%) and Aetna (AET +2.5%) for its heart drug Entresto (sacubitril/valsartan) that is based on its ability to reduce the proportion of patients who are admitted to the hospital for heart failure. The performance-based scheme applies to the insurers' commercial business, not Medicare or Medicaid.
- Entresto costs $12.50 per day or $4,560 per year, not the most expensive new drug but higher than expected. The deal specifies a base price and modest rebate that will fluctuate based on the number of hospitalizations and savings to the plan.
- Analysts expect more performance-based drug pricing arrangements going forward since it holds the manufacturer accountable for the product's claimed efficacy. Insurers like the deals because they will save money if the drug's benefits are realized and will pay a premium only in such instances, thereby derisking including the drug in their formularies.
Thu, Feb. 4, 10:08 AM
- CIGNA (CI +0.4%) Q4 results: Revenues: $9,528M (+6.7%); Premiums: $7,461M (+8.0%); Fees: $1,056M (+3.4%); Adjusted Income from Operation: $486M (+2.3%); Net Income: $426M (-8.8%); EPS: $1.64 (-7.3%); Non-GAAP EPS: $1.87 (+3.9%); Quick Assets: $400M.
- FY2015 results: Revenues: $37,876M (+8.5%); Premiums: $29,642M (+8.9%); Fees: $4,217M (+8.7%); Adjusted Income from Operation: $2,256M (+6.7%); Net Income: $2,094M (-0.4%); EPS: $8.04 (+2.7%); Non-GAAP EPS: $8.66 (+10.0%); Quick Assets: $1.4B (+40.0%).
- 2016 Guidance: Adjusted operating income per share: $8.85 - 9.25.
Thu, Feb. 4, 6:04 AM
- CIGNA (NYSE:CI): Q4 EPS of $1.87 beats by $0.07.
- Revenue of $9.53B (+7.1% Y/Y) beats by $10M.
Wed, Feb. 3, 5:30 PM
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Wed, Jan. 13, 3:23 AM
- Although still under review by the Justice Department, Aetna (NYSE:AET) Chief Executive Mark Bertolini expects the company's $37B acquisition of rival Humana (NYSE:HUM) to close this year.
- "So far, we have nothing to believe it will be any slower than that, or any faster," Bertolini said in an interview at the JP Morgan Healthcare conference.
- Anthem (NYSE:ANTM) CEO Joseph Swedish also anticipates the firm's $47B merger with Cigna (NYSE:CI) to close in 2016 - moves that will further consolidate the U.S. health insurance industry.
Dec. 3, 2015, 11:15 AM| Dec. 3, 2015, 11:15 AM
Dec. 3, 2015, 3:13 AM
- After settling multiple class-action lawsuits earlier this week, Anthem (NYSE:ANTM) and Cigna (NYSE:CI) could take a step toward consummating their merger today as shareholders of both companies vote on whether to proceed with the $54B deal.
- But even if shareholders give the go-ahead, the merger must survive intense scrutiny among federal and state regulators.
- The tie-up is one of two mergers being proposed that would combine the five largest U.S. insurers into three companies; the other deal is one announced between Aetna and Humana.
- Previously: Anthem to acquire Cigna for $54.2B (Jul. 24 2015)
Nov. 19, 2015, 3:01 PM
- Medical insurers and managed care providers are taking it on the chin today. UnitedHealth Group (UNH -5.5%) brought the rain with its softer earnings guidance as a result of weaker demand for individual insurance purchased through exchanges. It seems that the premium hikes, which the Affordable Care Act was supposed to curtail, are having their predictable effect.
- Previously: UnitedHealth Group down 6% on lowered guidance (Nov. 19)
- Related tickers: (AET -7.3%)(CI -5.7%)(HUM -4.2%)(CNC -9%)(ANTM -6.8%)(WCG -4.6%)(MGLN -4.4%)(HNT -5.2%)
Nov. 6, 2015, 9:41 AM
- CIGNA (CI -2.2%) Q3 results: Revenues: $9,389M (+7.2%); Premiums and Fees: $6,619M (+8.3%); Net Income: $547M (+2.4%); EPS: $2.10 (+4.5%); Non-GAAP EPS: $2.28 (+10.7%).
- Customers: Commercial: 14,291 (+3.3%), Government: 558 (+8.6%); Medical: 14,849 (+3.5%); Behavioral Care: 24,591 (+4.7%); Dental: 13,872 (+2.4%); Pharmacy: 7,980 (+7.2%); Medical Part D: 1,472 (+23.3%).
- Q4 2015 Guidance: Non-GAAP operating income: $420M - 470M; non-GAAP operating income per share: $1.61 - 1.81.
- 2015 Guidance: Revenue growth: ~ 9%; non-GAAP operating income: $2.19B - 2.24B; non-GAAP operating income per share: $8.40 - 8.60.
Nov. 6, 2015, 6:05 AM
- CIGNA (NYSE:CI): Q3 EPS of $2.28 beats by $0.08.
- Revenue of $9.39B (+7.2% Y/Y) misses by $120M.
Nov. 5, 2015, 5:30 PM
Sep. 21, 2015, 6:52 PM
- Wynn Resorts (NASDAQ:WYNN), Viacom (NASDAQ:VIAB) and Dollar Tree (NASDAQ:DLTR) headline Goldman Sachs' list of 25 companies that could post outsized returns even as more and more stocks are moving in lock-step.
- Goldman’s picks come as return dispersion - the performance gap among stocks - has sunk lately amid turmoil in China and concerns about when the Fed will raise interest rates that has pushed stock correlations to their highest level since 2011.
- Given the low-dispersion setting, Goldman says investors should focus on these 25 stocks that have high “dispersion scores” and 15%-plus upside to the firm’s targets: WYNN, VIAB, DLTR, UAL, LUV, URBN, CBG, JNPR, MPC, NFLX, HBI, SIG, CRM, CERN, VLO, KMX, ENDP, CTSH, ISRG, ETFC, TSN, CCE, CI, REGN, GT
Aug. 25, 2015, 5:35 PM
- investors should stick with "market darlings" - the 25 stocks that had performed the best during the six months before a market pullback - according to the analyst team at RBC.
- The firm notes that although many recent winners are leading the market lower, the extent of the underperformance is just 1%; it also says investing in the group following sharp market pullbacks is a winning strategy over the ensuing week, month and six months.
- RBC's 25 market darlings are AET, ALTR, AMZN, AIZ, CVC, CI, CAG, EA, EQIX, EXPE, GME, GOOGL, HAS, HCA, MNST, NFLX, NKE, PRGO, REGN, SBUX, TSO, TWC, TSS, UA, UHS
Aug. 7, 2015, 1:58 AM
- U.S. hospitals are now urging antitrust regulators to seriously debate Anthem's (NYSE:ANTM) planned acquisition of rival Cigna (NYSE:CI).
- In a letter to the DOJ, the American Hospital Association said combining the country's No. 1 and No. 5 health insurers would reduce competition in 817 geographic markets serving 45M consumers.
- Anthem announced the $47B plans just weeks after Aetna inked a deal with Humana, reducing the number of national insurers to three from five.
Jul. 30, 2015, 1:37 PM
- Unsurprisingly, Express Scripts (ESRX -0.6%) takes a dim view of the proposed price of the cholesterol-lowering PCSK9 inhibitor Praluent (alirocumab). Last Friday, co-developers Sanofi (SNY +1.6%) and Regeneron Pharmaceuticals (REGN +0.4%) announced that the wholesale acquisition cost (WAC) of the once-every-two-week injection will be $40 per day or $14,600 per year. This is several orders of magnitude above the cost of statins, which average $2 - 3 per day.
- WAC is the average price that wholesalers and distributors pay for the drug. Patients will, of course, pay quite a bit more.
- Pharmacy benefit managers, still feeling the pinch from Gilead's (GILD +1.8%) HCV meds Sovaldi and Harvoni, will likely ratchet up their opposition as Praluent's U.S. launch commences.
- Related tickers: (AET +0.9%)(CTRX)(CNC +0.9%)(CI -0.7%)(HUM)(MRK +0.3%)(OCR +0.4%)(UNH -0.7%)(CVS -0.5%)
Cigna Corp. provides medical, dental, disability, life and accident insurance and related products and services to businesses, governmental and non-governmental organizations and individuals. The company operates through following segments: Global Health Care, Group Disability and Life, Global... More
Industry: Health Care Plans
Country: United States
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