Fri, Nov. 20, 7:11 PM
- Shares of health insurance companies rebounded today after several major insurers issued reassuring statements that their profits were on track, a day after UnitedHealth (NYSE:UNH) cut its 2015 forecast, reported deep losses from its Affordable Care Act exchange business and said it will decide next year whether it wants to continue in that market.
- Aetna (NYSE:AET) and Anthem (NYSE:ANTM) backed their profit outlooks for the year and said their individual commercial businesses were performing within expectations.
- Leerink analyst Ana Gupte reiterated Outperform ratings on AET and ANTM, saying both companies' reaffirmation of 2015 EPS guidance - $7.45-$7.55 for AET, and $10.10-$10.20 for ANTM - met her expectations.
- Molina Healthcare (NYSE:MOH) said it is seeing profits on its exchange business, and CEO Mario Molina said the company was not seeing the issues UNH had raised.
- Centene (NYSE:CNC) also backed its outlook and said its marketplace business is performing as expected.
Thu, Nov. 19, 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%)
Tue, Oct. 27, 6:05 AM
Mon, Oct. 26, 5:30 PM
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Mon, Oct. 26, 7:51 AM
- At a special meeting of shareholders held on Friday, Centene (NYSE:CNC) 99% of the shares voting backed the Health Net (NYSE:HNT) merger. The affirmative votes represented 85% of all outstanding shares. Shareholders also approved the increase of authorized shares to 400M from 200M.
- Also on Friday, 97% of Health Net's voting shareholders backed the merger, representing more than 78% of all outstanding shares.
- The transaction is expected to close in early 2016.
- Previously: Centene takes out Health Net for $6.8B (July 2)
Thu, Oct. 22, 10:25 AM
Mon, Oct. 19, 3:05 AM
- Shareholders will get their say this week on two proposed health insurer mergers: Aetna's (NYSE:AET) $37B offer for Humana (NYSE:HUM), and Centene's (NYSE:CNC) $6.3B bid for Health Net (NYSE:HNT).
- Although consumer advocates have raised concerns about whether the combination will lead to less competition and higher prices, proxy advisors ISS and Glass Lewis have given both deals a thumbs-up.
- Aetna and Humana investors are scheduled to vote this afternoon and Centene and Health Net shareholders will cast their ballots on Friday.
Mon, Sep. 21, 4:55 PM
Wed, Aug. 12, 8:52 AM
Mon, Aug. 3, 8:58 AM
- Health Net (HNT) announces it has commenced a consent solicitation with respect to its 6.375% Senior Notes due 2017.
- The company is soliciting consents from holders of record as of 5:00 p.m., New York City time, on July 31, 2015 to amend certain terms of the Notes, including the defined term "Change of Control" regarding the July 2, 2015 Plan of Merger with Centene (CNC), and "Proposed Amendments."
- Health Net is offering to pay each holder of record who validly delivers its consent on or prior to the expiration date of August 12, 2015 a cash payment of $2.50 for each $1,000 in aggregate principal amount of Notes for which a consent is validly delivered. This cash payment will be paid following the expiration date and the satisfaction or waiver of the other conditions. Previously: Centene takes out Health Net for $6.8B (July 2 2015)
Thu, Jul. 30, 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%)
Tue, Jul. 28, 1:41 PM
- Teladoc (TDOC -2.2%) initiated with Overweight rating and $38 price target by JP Morgan; a Buy rating and $38 (23% upside) price target by Deutsche Bank; a Buy rating and $37 price target by SunTrust Bank and an Outperform rating by William Blair.
- Natera (NTRA +0.1%) initiated with Equal Weight rating and $20 (11% upside) price target by Morgan Stanley.
- Aegerion Pharmaceuticals (AEGR +9.4%) upgraded to Buy from Hold by Jefferies. Price target maintained at $26 (30% upside).
- Centene (CNC) upgraded to Buy from Neutral by UBS. Price target maintained at $80 (16% upside).
- Biogen (BIIB +2.4%) upgraded to Outperform from Market Perform by Bernstein. Price target lowered to $385 (21% upside) from $436.
- Anthem (ANTM +1.3%) upgraded to Buy from Neutral with $185 (21% upside) price target by Sterne Agee CRT. Cigna (CI -0.2%) also upgraded to Buy with a $190 (30% upside) price target.
- Alexion Pharmaceuticals (ALXN +2.6%) upgraded to Overweight from Not Rated by JP Morgan. Price target is $249 (23% upside).
- IGI Labs (IG +0.5%) upgraded to Buy from Neutral by Roth Capital. Price target raised to $11 from $7 (18% downside risk).
- Omnicare (OCR +0.3%) downgraded to Neutral from Overweight by JP Morgan. Price target lowered to $90 (6% downside risk) from $98.
- Ultragenyx (RARE +3.4%) downgraded to Equal Weight from Overweight by Morgan Stanley. Price target raised to $126 (5% upside) from $77.
- Biogen (BIIB +2.1%) downgraded to Neutral by Baird. Price target lowered to $316 (0% upside) from $480.
- Sunesis Pharmaceuticals (SNSS +21%) downgraded to Sell from Buy by Roth Capital Partners. Price target lowered to $1 (22% downside risk) from $5.50.
Tue, Jul. 28, 8:08 AM
- Centene (NYSE:CNC) Q2 results ($M): Revenues: 5,506 (+36.8%); Premium: 4,692 (+40.9%); Service: 492 (+20.0); Medical Costs: 4,181 (+41.3%); Operating Earnings: 173 (+86.0%); Health Benefits Ratio: 89.1% (+0.2%).
- Net Income: 88 (+79.6%); EPS: 0.72 (+75.6%); CF Ops (6 mo.): 395 (-4.1%).
- Managed Care Membership: 4,613,700 (+37.9%).
- 2015 Guidance: Premium & Service Revenues: $20.8B - 21.2B from $20.5B - 21.0B; Health Benefits Ratio: 89.1 - 89.5% from 89.2 - 89.6%; G &A Expense Ratio: 8.0 - 8.4% (unch).
Tue, Jul. 28, 6:03 AM
Mon, Jul. 27, 5:30 PM
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Tue, Jul. 14, 7:26 AM
- Invuity (NASDAQ:IVTY) initiated with Overweight rating and $18 (29% upside) price target by Piper Jaffray.
- Centene (NYSE:CNC) upgraded to Outperform from Market Perform by FBR Capital Markets. Price target raised to $90 (23% upside) from $80.
- Aquinox Pharmaceuticals (NASDAQ:AQXP) downgraded to Hold from Buy by Jefferies. Price target lowered to $2 (3% upside) from $13.
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