Healthcare

Supreme Court gives shot in arm to Obamacare M&A

9 Jul 2012

Expanding health coverage to 32 mln Americans remains politically contentious. But it’s here to stay and a lucrative opportunity for insurers that helps justify juicy merger premiums. That’s the logic behind WellPoint’s pricey $4.5 bln bet on Amerigroup. More deals are likely.

Gas giant Linde expands to fill healthy space

2 Jul 2012

The German company will pay $4.6 billion including debt for Lincare, a specialist in respiratory gases. That is a full-looking 9.3 times EBITDA and synergies will be limited. But Linde boosts its U.S. footprint - and secures a route to growth outside its consolidated core market.

Obamacare is here, it’s clear, get used to it

28 Jun 2012

Talk of overturning the Supreme Court’s ruling is empty rhetoric. Even if Mitt Romney defeats Obama, he won’t have the votes to repeal the healthcare law. Republicans and corporate America obsess over the broad lack of certainty. They should embrace the fact they just got some.

Court upholds Obamacare with barely a legal ripple

28 Jun 2012

Saving the president’s healthcare reform may roil the election but won’t change U.S. legal precedent much. Congress stays powerful subject to useful limits in the Medicaid context. The Supreme Court ruling is a reminder of the Constitution’s resilience amid political turmoil.

Four Seasons finally gets debts under control

30 Apr 2012

Guy Hands is buying the UK care-homes operator for an enterprise value of 825 million pounds. Private equity’s role in the sector is controversial. But this restructuring-cum-takeover should return Four Seasons to a semblance of financial health.

Obama backs healthcare defender – until he doesn’t

29 Mar 2012

Despite top lawyer Donald Verrilli’s stumble before the Supreme Court, the White House gave him a confidence vote. That’s what famed Yankees manager Billy Martin would get before being fired. Verrilli’s miss may not change the result but it costs him credibility - if not his job.

Top U.S. judges may drown out healthcare debate

23 Mar 2012

The most verbose Supreme Court on record will next week hear a hefty three days of oral argument on President Obama’s landmark reform. If past patterns hold, the justices will spend more time testing each other than listening to lawyers. It’s the legal system at its hammiest.

U.S. justices put hazy patent rules back in focus

21 Mar 2012

A unanimous Supreme Court said reading medical tests is, like gravity, based on a law of nature that can’t be patented. The ruling should cut infringement claims by diluting protections for other fuzzy and overly broad ideas. The upshot could be a healthy boost for innovation.

Gulf healthcare IPO looks tempting but risky

8 Mar 2012

Abu Dhabi medical group NMC wants to raise $250 mln in a London IPO. The move would connect a firm with a clear growth story to an investment community that understands healthcare. But qualms over governance and stock overhangs mean a big discount may be needed to get it away.

Even a legal healthcare victory may hurt Obama

6 Jan 2012

The U.S. Supreme Court should uphold the president’s crowning achievement, but that won’t preclude a backlash. A win will embolden congressional candidates seeking to repeal the law and deepen the partisan divide. Governing could be as tough a task as re-election for Obama.

Ethical Economy: Eat more, pay more

7 Dec 2011

The United States leads the world in both obesity and health care spending. The two are tied together by a wilful attitude to health. The combination of “I want what I want” with “society pays” is unjust and expensive. It’s time to consider some medical de-socialisation.

Pharma stocks no safe haven in austerity storm

1 Dec 2011

Drug shares have traditionally weathered economic storms well. Yet today the sector trades at a 20 pct discount to the market. With budget cuts the medicine of choice for solving government deficits, investors are rightly anticipating further knocks. The sector is best avoided.

Obama’s healthcare gets help on way to top court

14 Nov 2011

U.S. judges have ruled on the divisive law largely along party lines. But a right-wing icon helped break that pattern last week with a powerful opinion in support. The Supreme Court has a mind of its own but the precedent will be hard to ignore, even for conservative justices.

Crop of shock CEO exits reinforces need to plan

25 Oct 2011

Judging by First Solar’s 25 pct stock price drop, you’d think it erred in ousting its chief. Or that Quest’s 11 pct jump meant it should’ve dumped its boss sooner. And no reaction must make IBM’s new CEO a snooze. The real lesson is that boards must carefully plan successions.

Express/Medco deal is antitrust roll of the dice

21 Jul 2011

Express Scripts is offering $29.1 bln for Medco, creating a kahuna in the pharmacy benefits industry. That looks like a provocation to trustbusters hence no regulatory break fee. But by highlighting Medco's flaws, the duo is emulating AT&T's tactics. Victory will be elusive.

Medicare plan might shift U.S. debt logjam

30 Jun 2011

A pair of senators have proposed changes to retiree healthcare that would save $600 bln over 10 years. That's modest compared with the problem. But it's probably the last chance to make a start until 2013. It could even help ease the more immediate impasse on federal borrowing.

Romney White House bid pits policy vs PowerPoint

13 May 2011

During his private equity career, the early Republican frontrunner was known as a supersalesman who could dazzle with data. But presentation skills alone won't make him U.S. president. A slideshow defense of his Massachusetts health plan hasn't silenced conservative critics.

U.S. debt fix needs all the above health plan

9 May 2011

Without a Medicare overhaul, health spending will eventually bankrupt Uncle Sam. A solution ahead of 2012 elections is unlikely. But key pieces for a compromise may already be in place. Give Democrats a decade to revamp the current system. If they fail, privatize it.

Wounded Community takes parting shot at Tenet

2 May 2011

Though stung by its takeover target's vicious defense, Community Health has lobbed in a sweetened $4.1 bln bid for the rival hospital operator. Investors aren't taking it seriously and Tenet probably won't either. But it may make it easier for Community to limp away.

J&J may have more on overseas shopping list

27 Apr 2011

The U.S. health giant's $21.3 bln purchase of Synthes is its largest ever. A big deal seemed a way for J&J to deploy its $28 bln of cash, largely trapped overseas. But it is paying mostly in stock. Despite problems with its current businesses, J&J may have further deals in mind.