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.
Tue, Jul. 7, 10:50 AM
- Edwards Lifesciences (EW -0.8%) upgraded to Overweight from Equal Weight with a $168 (17% upside) price target (up from $135) by Morgan Stanley.
- HealthSouth (HLS -0.7%) upgraded to Market Outperform from Market Perform with a price target of $54 (15% upside) by JMP Securities.
- AstraZeneca (AZN -0.6%) upgraded to Buy from Hold with an $81 (25% upside) price target by Berenberg.
- Humana downgraded to Hold from Buy by Argus Research.
- Intuitive Surgical (ISRG -1.1%) downgraded to Underweight from Equal Weight by Morgan Stanley. Price target lowered to $500 (6% upside) from $560.
- Aegerion Pharmaceuticals (AEGR -0.5%) downgraded to Sell from Neutral by Guggenheim Securities.
- Centene (CNC -3.3%) downgraded to Equal Weight from Overweight by Barclays. Price target lowered to $81 (20% upside) from $88.
- Raptor Pharmaceutical (RPTP -1.8%) downgraded to Underperform from Perform with an $8 (40% downside risk) price target by Oppenheimer.
- Aetna (AET -3.5%) downgraded to Market Perform from Outperform by FBR Capital Markets. Price target lowered to $120 (6% upside) from $130.
- Baxter International (BAX -2.3%) downgraded to Neutral from Buy by Bank of America. Price target lowered to $40 (8% upside) from $78.
Thu, Jul. 2, 7:50 AM
- Centene (NYSE:CNC) acquires managed healthcare firm Health Net (NYSE:HNT) for ~$6.8B, including the assumption of ~$500M of debt. The combined firms will have estimated pro forma premium and service revenues of ~$37B this year and the merger will be significantly accretive to EPS in the first year after closing.
- Under the terms of the deal, Health Net shareholders will receive 0.622 shares of Centene and $28.25 in cash for each Health Net share. The total consideration of $78.57, based on CNC's closing price yesterday, represents a 21% premium over HNT's price at yesterday's close. Once the transaction is finalized in early 2016, CNC shareholders will own 71% of the combined entity while HNT shareholders will own 29%.
- Centene will fund the cash portion of the deal with cash on hand and debt.
Thu, Jun. 25, 10:26 AM
Thu, Jun. 11, 7:15 AM
- Centene (NYSE:CNC) increases its full year 2015 guidance: Premium and Service Revenues: $20.8B - 21.2B from $20.5B - 21.0B; EPS: $2.70 - 2.82 from $2.60 - 2.72; Health Benefits Ratio: 89.2 - 89.6% (unch); G&A Expense Ratio: 8.0 - 8.4% (unch); Effective Tax Rate: 48.0 - 50.0% (unch).
- The company's Investor Day will kick off tomorrow at 8:30 am ET in New York City.
Fri, May 29, 6:35 PM
- A sale of Humana (NYSE:HUM) could be the "first domino in overdue managed care M&A,” Leerink Partners analyst Ana Gupte says, believing a deal or even talk of a deal will force health insurers, both large and small, to consider their M&A options.
- Gupte expects the next year will see multiple strategic actions among the major players, and she remains bullish on the sector broadly for both fundamental reasons and the benefits to shareholders from such consolidation.
- The industry eventually will narrow to a "Big 3" from its current “Big 5" as big insurers target midsized firms, Gupte says, citing WellCare Health Plans (NYSE:WCG), Centene (NYSE:CNC), Health Net (NYSE:HNT) and Molina Healthcare (NYSE:MOH) as the most attractive takeout targets.
- Earlier: Humana spikes 20% after WSJ report says it wants to sell itself
Fri, May 22, 11:14 AM
- Major health insurers in some states are proposing rate increases of as much as 51% for plans sold under the federal health law, according to a WSJ analysis, setting the stage for an intense debate over the law’s impact.
- All the insurers cite high medical costs incurred by people newly enrolled under the Affordable Care Act, saying their proposed rates reflect the revenue they need to pay claims now that they have had time to analyze their experience with the law’s requirement that they offer the same rates to everyone regardless of medical history.
- Some insurers are trying to catch up with the impact of expensive drugs such as Sovaldi, foreseeing significant pent-up demand from the newly enrolled, says a fellow at the Society of Actuaries.
- Relevant tickers: IHF, HNT, UNH, MOH, CNC, UAM, AET, CI, HUM, HCA, WCG, GTS, EMCI, MGLN
Tue, Apr. 28, 6:54 AM
- Centene (CNC -3.9%) Q1 results: Revenues: $5,131M (+48.3%); COGS: $402M (+66.1%); SG&A: $403M (+36.1%); Operating Income: $129M (+84.3%); Net Income: $64M (+88.2%); EPS: $0.52 (+79.3%); Quick Assets: $1,666M (+3.5%).
- Health Benefits Ratio: 89.8% (+0.6%).
- Total Membership: 4,401,700 (+44.4%); Medicaid: 3,133,900 (+44.5%).
- 2015 Guidance: Premium and service revenues: $20,500M - 21,000M; EPS: $2.60 - 2.72; Health Benefits Ratio: 89.2 - 89.6%; G&A expense ratio: 8.0 - 8.4%; effective tax rate: 48.0 - 50.0%.
Tue, Apr. 28, 6:04 AM
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