Dec. 31, 2013, 4:09 AM
- As of yesterday, only around half of those who had signed up for healthcare coverage offered by over 100 insurers in 17 states under Obamacare had paid for their plans.
- As a result, confusion is set to reign when the coverage takes effect tomorrow and until insurers can process those payments and issue membership cards. Around 2M people have signed up for coverage.
- Insurers are attempting to alleviate the situation for customers by saying they'll accept payment as late as January 31 for coverage that starts tomorrow.
- Meanwhile, Pharmacy chains such as CVS Caremark (CVS) and Walgreen (WAG) will provide prescription medications to consumers who have started but not completed the sign-up process.
- More on Obamacare.
- Relevant company tickers: AET, HNT, HUM, UNH, WLP, MOH. ETFS: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS.
Dec. 18, 2013, 8:58 AM| Comment!
Dec. 10, 2013, 11:16 AM
- Cardinal Health (CAH +4.1%) and CVS Caremark (CVS +1.9%) are teaming up to create the country's largest generic sourcing entity.
- Ultimately, this is a joint venture that combines and leverages the companies' supply chain management capabilities in order to negotiate generic supply deals.
- No physical assets are being contributed by either side and the initial term of the arrangement is 10 years.
- CAH will make quarterly payments of $25M to CVS over the life on the arrangement in order to "reflect an equitable 50/50 JV."
- The companies have also inked a three-year extension of their pharma distribution agreements. (PR)
Dec. 2, 2013, 3:08 PM| Comment!
Nov. 27, 2013, 11:00 AM
- CVS Caremark's (CVS) agreement to acquire Coram, the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group, for approximately $2.1B will strengthen its position relative to market leader Walgreens (WAG), Wells Fargo says.
- "This transaction should strengthen CVS' positioning in the specialty pharmaceutical business, which we believe is increasingly critical in driving growth for the PBMs, particularly as we believe historical sources of earnings growth taper (including generics and mail order). Walgreens is currently the market leader in the specialty pharmacy business, followed closely by CVS and the acquisition of Coram should strengthen CVS' positioning."
- "Prior to Caremark being solely a PBM, it was one of the largest home infusion therapy companies in the country, but Caremark sold these assets in 1995 to Coram for about $310M in cash and preferred stock, with estimated revenues of under $500M. Today's announcement will bring back this business despite the now resolved litigated history regarding the original sale, though Coram is now considerably larger and includes ambulatory infusion sites."
- Coram peer BioScrip (BIOS) is +20% today, a move that appears directly related to the acquisition of Coram.
Nov. 27, 2013, 8:48 AM
- CVS Caremark (CVS) beefs up its specialty pharmacy offerings, agreeing to buy specialty infusion services and enteral nutrition business Coram, LLC from Apria Healthcare for about $2.1B.
- Coram is expected to generate about $1.4B in revenue in the first year following the deal's close (expected in Q1), but to have a negligible impact on CVS' overall 2014 results. The purchase is expected to add $0.03-$0.05 to EPS in 2015.
- Press release
Nov. 5, 2013, 10:14 AM
- In creating its list of top investment ideas, Credit Suisse allows its analysts a max of 3 picks over a 6-12 month horizon. Those who don't list a name under $3B in market cap are allowed a "bonus small-cap pick."
- Picks are broken down by sector and by analyst, with each allowed a few words for his/her elevator pitch ... a neat read for ideas to keep by your desk.
- Additions to the Top Picks list since the last publication in basic materials: CE, FOE, NUE, STLD.
- In consumer discretionary: BYD, MAR, CAB.
- Consumer staples: CVS.
- Energy and utilities: JKS.
- Financials: EV.
- Health care: ABBV, BMY.
- Industrials: PH.
- Media/Internet/Telecom: NXST.
- Tech: AVGO, NXPI, KLAC, TER, ULTI, CTXS.
- See also: Those removed from the list.
Nov. 5, 2013, 8:10 AM
- CVS Caremark (CVS) reports a nice jump in profits during Q3 as its pharmacy business thrived and a legal settlement factored in.
- Revenue in the Pharmacy Services segment rose 7.8% to $19.5B on higher claims and drug prices, while the Retail Pharmacy segment saw a 5% jump in sales to $16.3B on higher prescription volume.
- The company raised and narrowed its guidance for full year EPS. (PR)
- CVS +2.5% premarket.
Nov. 5, 2013, 7:03 AM
Nov. 5, 2013, 12:05 AM
- AFSI, AKRX, AMED, AMG, AOL, ARCC, ARCO, ASH, BCRX, BDX, BPI, CCC, CHTR, COCO, CTSH, CVS, D, DLPH, DNR, DTV, DWRE, DX, DXM, EMR, ENR, EXH, EXLP, EXPD, FE, GLDD, GTIV, HCA, HCN, HL, HPT, HSIC, HST, HW, ICE, IFF, ISIS, KORS, KWK, LBTYA, LPX, MITT, MNTA, MOS, MPEL, MPW, NNN, NTLS, NXST, ODP, OMX, OWW, OXF, OZM, PMC, PQ, RDC, REGN, REN, RHP, RIGL, RRD, RRGB, SRE, TGH, TMUS, TRGT, TRP, VSI, XPO, ZBRA, ZINC, ZTS
Nov. 4, 2013, 5:30 PM
- AFSI, AKRX, AMED, AMG, AOL, ARCC, ARCO, ASH, BCRX, BDX, BPI, CCC, CHTR, COCO, CTSH, CVS, D, DLPH, DNR, DTV, DWRE, DX, DXM, EMR, ENR, EXH, EXLP, EXPD, FE, GLDD, GTIV, HCA, HCN, HL, HPT, HSIC, HST, HW, ICE, IFF, ISIS, KORS, KWK, LBTYA, LPX, MITT, MNTA, MOS, MPEL, MPW, NNN, NTLS, NXST, ODP, OMX, OWW, OXF, OZM, PMC, PQ, RDC, REGN, REN, RHP, RIGL, RRD, RRGB, SRE, TGH, TMUS, TRGT TRP, VSI, XPO, ZBRA, ZINC, ZTS
Oct. 22, 2013, 2:44 PM
Oct. 16, 2013, 3:21 PM
- It's a good year for large-cap core mutual funds, with 46% beating the S&P 500 vs. a 10-year average of just 36%, according to Goldman Sachs.
- The study finds most are overweight health care (XLV), which not coincidentally happens to be the best-performing sector this year, up 30%.
- The funds are most underweight utilities (XLU), which just happen to be the second worst-performing sector YTD, up 10%. Only telecoms have done worse.
- Chasing performance? May be, but the team finds the funds have tended to be present in the good performers for the last 12 months, and have retreated from discretionary stocks (XLY) of late despite their outperformance.
- Individual names? CVS Caremark (CVS), JPMorgan (JPM), and Cisco (CSCO) are the stocks liked the most vs. the benchmark.
- Health care ETFs: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS.
- Utility ETFs: IDU, PUI, XLU, VPU, RYU, FXU, PSCU, UPW, SDP, UTLT.
Oct. 16, 2013, 1:33 PM
- A wellness loyalty program expanded by Rite Aid (RAD +0.8%) a few months ago has drawn in 930K senior citizens, according to the company.
- It's an impressive mark with the demographic viewed as hard to convince to change its shopping habits at times.
- The company still trails Walgreen (WAG +2.5%) and CVS Caremark (CVS +0.2%) by most metrics, but by taking senior market share it can narrow the gap.
Oct. 8, 2013, 8:10 AM
- CVS Caremark (CVS) is initiated at Jefferies with a Buy rating and $71 price target the drug retailer best positioned to benefit from the Affordable Care Act, the aging of baby boomers and double-digit growth in specialty pharmacy.
- "As the #1 U.S. drugstore, #2 PBM, #2 in Medicare Part D insurance plans, and #2 in Specialty Pharmacy, the company's integrated PBM/retail model is best positioned to capture the coming shifts in the marketplace," Jefferies writes.
Sep. 25, 2013, 3:15 PM
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