Report:DOJ Approves of CVS-Aetna Merger

According to trade publication Reorg Research,the relevant US Department of Justice staff will not oppose the merger of drugstore chain/pharma benefits manager CVS Health with health insurer Aetna,sending a sigh of relief through the sector and an uptick in share prices.The 69 billion dollar transaction is a move seen at least partly as a reaction to the entry of electronic commerce giant Amazon into the health care field.Another possible reaction was by health insurer Cigna as it seeks to merge with pharma benefits manager Express Scripts.
In January 2018,Amazon,Berkshire Hathaway and JP Morgan Chase,which collectively employ more than 500,000 people,announced they are forming a joint enterprise to provide care for staff at a reasonable cost by enabling simplified,high quality and transparent health care through technology.JP Morgan Chase CEO Jamie Dimon explained:
The three of our companies have extraordinary resources,and our goal is to create solutions that benefit our US employees,their families,and,potentially,all Americans.*
Reorg Research provides automated docket updates;breaking news;and analysis for distressed debt investors;lawyers;and restructuring professionals.The New York-based company seeks to provide independent,insightful and timely market intelligence and analysis for better business and investment decisions.*
The DOJ staffers will submit their recommendation to their superiors for final approval at the end of July.*
Aetna Inc (AET),Cigna Inc (CI),CVS Health (CVS),Express Scripts (ESXR)

Should You Invest in Abbott Labs?

A number of analysts and hedge funds are maintaining or increasing their estimation of health care titan Abbott Labs.For example,Deutsche Bank reaffirmed its buy on the stock on 19 March;BTIG Research reaffirmed its buy rating on 26 April;Credit Suisse reaffirmed on 17 April;Wells Fargo reaffirmed on 28 April,as did Jefferies Group.Overall,there were six holds and 18 buys on the stock,as well as one strong buy.*
Among the hedge funds,Neuberger Berman increased its Abbott holdings by 9.7% in Q4;DNB Asset Management hiked its Abbott holdings by 69.7%;and Cambiar Investors LLC raised its stake in Abbott by 4.6% in Q4.*
Abbott Labs was founded in 1888 by physician and drug store owner Wallace C. Abbott (People's Drug Store,Chicago),who eventually began manufacturing drugs himself.Today it employs about 73,000 in more than 150 countries.Its four operating segments and some of their products are Nutrition (Similac,Ensure,Glucerna,PediaSure);Medical Devices (glucose monitoring and laser vision-correction technologies);Diagnostics (immunoassay diagnostics,blood screening,bedside testing and companion diagnostics);and Pharmaceuticals (branded generic medications for pervasive and persistent health conditions outside the US only).*
Abbott Labs recently acquired medical device maker St.Jude Medical for 25 billion dollars-its largest ever acquisition-on the desire to gain bargaining power with hospitals.The company paid a 2.67% dividend as of Friday.It scored a double beat on Q1 earnings.Earnings per share were 0.41 versus an estimate of 0.39;revenue was 4.9 billion dollars versus the 4.77 billion estimate. *
Abbott Laboratories (ABT)

Trouble at SeaWorld and Independent Business;Walmart OK

SeaWorld's ebitda,or operating cash flow,was down 14-16%,and attendance came in below estimates.This is an astounding decline,said CNBC analyst Jim Cramer.This is just an abberation.I've never seen a complete collapse of ebitda.
This thing is just in trouble.The CNN documentary on SeaWorld must have played a role.*
The CNN documentary "Blackfish" covers the killing of a trainer by an orca at the Orlando,Florida SeaWorld in 2010.California is considering legislation to ban orca shows at amusement parks following the shocking incident.The company said it believes attendance in the quarter was impacted by demand pressure related to media attention surrounding proposed legislation in the state of California.*
If you're self-employed,your deductibles are out of control,Cramer observed.The cost of health care in this country is soaring with the Affordable Care Act.It's going to cost too much to have a baby-something to think about.This is what the companies involved in health and human services for independent business organisations are telling me.I don't mean to be political.Deductibles are flying high.*
Walmart has cut its full year forecast,but Raymond James analyst Budd Bugatch isn't too concerned.I feel pretty good about the report,Mr.Bugatcher said.Sales were better than expected.I think the costs were about health care,and a little bit about the economy as well.The new US CEO will take over an operation that is a pretty good operation.Returning growth to the core will be a key objective of his.
In the electronics area,Walmart has just gone through a project reboot.Our outperform rating is that investors with a large portfolio should overweight the stock and pay attention to it.*
Greg Foran is the new Walmart US CEO,having previously headed the company's Asia division.In a conference call,he told analysts that being in stock,clean stores and the right price were among his priorities.
Wal-Mart(WMT)

Philips,GRMC Sign Big Health Care Pact

Georgia Regents Medical Center and Koninklijke Philips NV have inked a 15 year,300 million dollar partnership agreement of unprecedented scope in the US.It promises to address current and future clinical,operational and equipment needs across GRMC's many facilities,at a fixed operational cost over the 15 year period. Four to six million GRMC patients in Georgia and South Carolina stand to benefit from the collaboration.It encompasses consulting services;advanced medical technologies;operational performance;planning and maintenance services. The goal is to deliver faster,more effective and cost-efficienr care from diagnostics to therapeutics,to inpatient and outpatient clinical services.The pact will cover all medical specialties and enhance medical research and clinical technology R&D for care delivery innovation. Philips will provide imaging systems;patient monitoring and clinical informatics;lighting and consumer products;as well as rapid access to new equipment and educational resources. Deborah DiSuizo,CEO of Philips Healthcare,said we are proud to embark on this transformational alliance,as we share the vision that we can create the future of healthcare by creatively and efeectively meeting the long term care needs of patients. Philips has entered similar but smaller scale agreements with hospitals in Europe,Asia,the Middle East and Africa that have proved successful in improving patient outcomes and controlling costs. Koninklijke Philips NV(PHG)

GE Makes New Saudi Commitment

General Electric,active in Saudi Arabia since 1942,has made a new commitment to invest 1 billion dollars there in the fields of energy,health care and innovation.The GE Innovation Center will be a collaborative place that will foster innovation in its DNA and drive a culture of co-creation to realise Vision 2020,the company says.The Center will open in early 2013 in the Eastern Province's Dharhan TechnoValley.
Vision 2020 emphasises Energy Diversification;Education;Research and Development;Quality Health Care;and Human Capital.The GEIC will bring together different players from customers,to academics and think tanks to collaborate and co-create,with the shared goal of finding solutions to realise Vision 2020.Reportedly 92% of Saudis feel innovation can drive a competitive economy.GE will work to incubate local innovation through the GEIC.
GE is providing Saudi Arabia with military and commercial aircraft jet engines;health care technologies and training;gas turbine technology through the GE Manufacturing Technology Center,or GEMTEC;and financial solutions.GEMTEC manufactures and services high tech energy equipment in the form of highly reliable and efficient gas turbines,which are characterised by operational flexibility and reduced emissions.
GEMTEC supports Saudi Arabia's strategic direction for the future.It currently employs 350 people,50% of whom are Saudis.GE is expanding GEMTEC to provide hundreds of new jobs in several new buildings.