Healthcare

Bayer’s cancer scare makes a bad deal worse

13 Aug 2018

The German group's market value fell nearly $10 bln after a court awarded $289 mln to a user of weed killer made by U.S. division Monsanto. That may overstate the likely losses, but the verdict undermines a deal that already destroyed value, and left shareholders without a say.

Collapsing deals point to tired M&A bull market

9 Aug 2018

Tribune and Rite Aid terminated plans to sell themselves after shareholders and regulators objected. Perceived double-dealing also played a role. But crummy transactions falling apart is to be expected from a late-stage of a merger cycle that has run its course.

Icahn’s late start blunts Cigna blocking campaign

7 Aug 2018

The activist makes a good case for rejecting the insurer’s $52 bln Express Scripts deal. Yet his argument - Cigna is paying too much for a target threatened by regulation and Amazon - was evident months ago. And the window for enlisting other arbs to his side has already closed.

Viewsroom: CBS’s $184 mln #MeToo challenge

2 Aug 2018

That’s what CEO Les Moonves gets if he leaves the U.S. TV network – unless fired for cause. That’s rare in corporate America. But allegations he sexually harassed women put the board on the spot. Plus: Hong Kong battles the Big Apple for IPOs. And China faces a vaccine scandal.

Icahn dusts off early playbook chapter with Cigna

2 Aug 2018

Company launches bad deal. Stock falls. Activist buys, shorts target, lobbies to unwind deal. Buyer stock goes up, seller plunges. Investor rejoices. Icahn did it with Mylan – and now he can repeat with Cigna’s value-destructive Express Scripts purchase. Plus ça change.

Siemens will pay a price for ducking breakup

2 Aug 2018

The trains-to-turbines group is dividing itself into three main units and holding onto stakes in non-core businesses. It’s a far cry from a GE-style restructuring. A more profitable, smaller company will emerge over time. But its conglomerate discount will take time to narrow.

Rite Aid’s itch should be easy to scratch

30 Jul 2018

Hedge fund Highfields objects to Cerberus-owned Albertsons’ merger with the $2 bln drugstore chain. Minor conflicts at board level don’t help. But plenty of value is being offered to Rite Aid investors. Albertsons doesn’t need to offer much more to make a deal look reasonable.

Apollo sends hospitals for cost-cutting surgery

23 Jul 2018

A healthcare outfit owned by the private-equity firm is buying rival LifePoint for $2.7 bln, the latest deal in the sector. The two industries make good bedfellows. Buyout shops are cash-rich and hospitals can more easily slash expenses and raise prices if not publicly traded.

China’s pharma scandals sully healthcare cleanup

23 Jul 2018

Quality control problems at two drug makers in July have angered politicians, frightened consumers and destroyed over $2 bln in shareholder value. They come despite an earnest campaign to toughen standards. Big heads will probably roll. Better medicine may result.

Really Big Data gives China medical AI edge

18 Jul 2018

Investors at a Hong Kong conference talked up a digital-healthcare revolution. The hype is also palpable in Silicon Valley, where U.S. life-sciences investment hit a record $17 billion last year. It’s early, but Chinese outfits with access to a huge data trove can take the lead.

Viewsroom: Is Silicon Valley getting nervous yet?

4 Jul 2018

The tech hub is getting squeezed by new policy restrictions amid a looming trade war between the U.S. and China. How is the Valley holding up? Plus: India's state lenders are losing CEOs. Is running these banks into the ground part of the plan?

Novartis contact lens spinoff defies messy optics

29 Jun 2018

Separating its Alcon eyecare division is an admission of failure for the Swiss pharma group, which spent $52 bln on the unit seven years ago. Though the listing won’t unlock much value, it should help Alcon’s recovery, and let new boss Vasant Narasimhan focus on making drugs.

GE breakup ushers in brave new era

26 Jun 2018

CEO John Flannery is spinning off the ailing $111 bln conglomerate’s healthcare unit and selling Baker Hughes, ending more than a century of growth. Focusing on aviation and power has risks, but the plan slashes debt and makes GE manageable. It was Flannery’s only logical choice.

Buffett and pals pick good medic for U.S. tapeworm

20 Jun 2018

Berkshire Hathaway, Amazon and JPMorgan chose Atul Gawande to lead their fight against rising medical bills. The surgeon has written extensively on how the system rewards excess, but not outcomes. Changing this focus would be a good start, even if neither easy nor sufficient.

How to solve a brewing $100 trln antibiotic crisis

19 Jun 2018

Germs are evolving immunity to existing treatments, but drug firms are reluctant to develop new ones. The costs could be monumental if they don’t. So-called patent vouchers might help – but big prizes and delinking revenue from pill sales would be cheaper ways to encourage R&D.

Medical device megadeals risk antitrust backlash

11 Jun 2018

Stryker is circling Boston Scientific for what could be a $58 bln takeover bid. Such a price tag wouldn’t be excessive by recent standards. But as more medical suppliers look for mergers to cut costs and gain leverage over hospitals, regulators will be tempted to step in.

KKR gives Envision a $6 bln general anesthetic

11 Jun 2018

Going private will make life less painful for the U.S. medical services group, which has labored amidst reports of patients stung by surprise charges for emergency treatment. KKR should make out fine, too, if healthcare practitioners’ ability to charge high prices endures.

Athenahealth moves from trauma to cure

6 Jun 2018

The underperforming healthcare-software firm has removed CEO Jonathan Bush shortly after he admitted hitting his ex-wife. The company is looking for a replacement, but a stalking-horse bid from activist Elliott Management could lead to a sale. Either could address what ails it.

The Exchange: Anatomy of a Theranos takedown

1 Jun 2018

John Carreyrou, the author of “Bad Blood,” explains how Elizabeth Holmes used fear and Silicon Valley myth-making to temporarily become a multi-billionaire – and how he exposed that the $9 bln company’s technology didn’t work.

Puerto Rico deaths will take toll on debt talks

29 May 2018

Last year’s hurricane ultimately killed some 5,000 people, a new study claims. That’s more than perished in Katrina in New Orleans or the Sept. 11 attacks. The extraordinary number will buttress the federal overseer trying to curtail payments on the island’s $70 bln of debt.