Healthcare

Congress not courts should cure Obamacare’s ills

21 Jun 2013

The U.S. healthcare act doesn’t need major surgery as it rolls toward full implementation, but it could do with some nips and tucks. Judges are hearing dozens of cases like this week’s test of certain tax credits. Such policy issues, however, are better handled by lawmakers.

Texas puts life insurance trading back on the map

17 Jun 2013

The Lone Star state now encourages people to sell their policies, though only to pay for long-term care. Others may soon follow. Individuals get money early – though less of it – and governments save on medical costs. Even Wall Street may benefit if enough buyers step forward.

U.S. justices square the helix on gene patents

13 Jun 2013

The Supreme Court ruled that companies can hold exclusive rights to synthetic human genes, but not naturally occurring ones. That allows biotech businesses to reap rewards for their work without stifling the research of others. The decision serves science, industry and the law.

Catch-and-release technique gets Pfizer off hook

3 Jun 2013

The U.S. pharma giant paid $1.3 bln for Esperion in 2004, but shut it down when a promising drug didn’t work out. Now the firm is going public anew. Same name, founder and a cholesterol treatment it discovered – and with Pfizer as a backer. It’s a novel form of schmuck insurance.

New SARS-like virus tests plague of patent trolls

31 May 2013

A deadly affliction first found in Saudi Arabia has led to squabbles over whether the quest for IP rights has impeded discovery and treatments. The case stretches the law far beyond the smartphone wars. When the stakes are this high, though, greed often plays a lesser role.

Smiths medical sale would create a fresh headache

31 May 2013

The UK conglomerate is in talks to sell one of its biggest units. A fully priced deal would highlight the turnaround under CEO Philip Bowman. But he needs a good plan for the more than 2 billion pounds in proceeds. That will probably include a mixture of pensions funding and M&A.

Valeant shows how some M&A favors the brave

28 May 2013

The $8.7 bln Bausch & Lomb deal is the biggest yet for the acquisitive pharmaceuticals group, but it comes with cost savings worth at least $5.6 bln. Investors added about as much to Valeant’s market value, giving it firepower to seek new targets. CEOs elsewhere should take note.

A.G. Lafley will be more proctor than gamble

24 May 2013

Bringing back the former P&G boss won’t ensure the Pampers-to-Scope giant reclaims former glory. His last decision – of a successor – flopped. But unlike the turnaround facing J.C. Penney’s returning ex-CEO, Lafley’s job is somewhat simpler: oversee cost cuts and brand building.

Healthcare study reveals risks of blind spending

3 May 2013

The trillions of dollars America plans for insuring the poor may not improve health, new research shows. The study’s merits aside, its scrutiny of Medicaid costs and benefits offers a model for making policy. Most programs would profit from a thorough look before Congress leaps.

Hostile drug deal gets too clever for its own good

18 Apr 2013

Finance firm Royalty Pharma tried to use Elan’s $1 bln stock buyback to swoop up the entire company. But it devised a puzzlingly complex tender offer that ended up replacing a solid long-term shareholder with investors much more likely to demand a chunkier premium.

Thermo Fisher gives corporate bidders Life

15 Apr 2013

The healthcare equipment maker is paying $13.6 bln for Life Technologies, edging out private equity bidders by about the value of the expected synergies. The buyer’s shares also rose, suggesting a rational price. After Dell and Heinz, the M&A playing field now looks flatter.

Bausch & Lomb IPO should be seen through new lens

10 Apr 2013

Warburg Pincus bought the eye care company for $3.7 bln during the buyout boom. The private equity firm is reportedly seeking a price tag of up to $10 bln. Even after fixing Bausch & Lomb’s problems, it’s still not worth a premium to, say, Merck. About $8 bln makes more sense.

Aging drives U.S. debt more than medical costs

11 Mar 2013

Much Washington talk focuses on runaway healthcare spending. But that has been slowing. Over the long term, say 25 years, the number of people needing treatment is the federal government’s biggest problem. Not far behind is the cost of interest as borrowing balloons.

Even after the knock, Novo Nordisk’s rating is fat

11 Feb 2013

The Danish drugmaker lost about $14 bln in market value after U.S. regulators held off approving a new insulin treatment. As the world grows obese, the diabetes specialist should profit handsomely. But the shares look rich, even after the 13 pct markdown.

Pfizer spins, but not completely off

22 Jan 2013

The pharma giant’s $2.2 bln IPO of its animal health unit, Zoetis, should cheer investors. Those contemplating buying the stock, however, will want to read the warning labels closely. Super-voting shares could mean Pfizer retains board control even if its stake goes below 50 pct.

Flu epidemic exposes U.S. risk management flaws

14 Jan 2013

The virus kills about 36,000 Americans and inflicts $90 bln of economic damage annually. While one year’s death toll is 10 times greater than all terrorist attacks since 2000, the government spends far more on homeland security. Poor resource allocation can be a hard thing to cure.

UnitedHealth takes risky $4.9 bln crack at Brazil

8 Oct 2012

The U.S. health insurer is paying around 40 times earnings for Brazilian market leader Amil Participações. UnitedHealth has grown fat on the American healthcare system. But when regulations are “100 percent different” there’s a danger the results will be too.

Founder’s veto backfires in botched M&A operation

3 Sep 2012

Regulators, politicians, your own wary investors: so many people can nix a big deal. Fresenius’s failed $4 bln bid for a rival German health group shows another risk. High approval hurdles can empower an awkward squad with smallish stakes in the target. Glencore must sympathise.

The old, the poor and U.S. healthcare explained

23 Aug 2012

Republican presidential hopeful Romney’s choice of running-mate Paul Ryan has put government programs like Medicare and Medicaid in the spotlight. Their cost – over $1 trln combined in 2011 – is spiraling. Breakingviews outlines the problem and the different candidates’ fixes.

Mitt Romney’s healthcare obsession is unhealthy

9 Jul 2012

The Republican presidential hopeful is hell-bent on repealing Obama’s Affordable Care Act. Making it a “day one” initiative, should he win, could undermine action on pressing economic issues, like unemployment. Such a move also would set a bad tone for dealing with Democrats.