Healthcare

Theranos got one diagnosis spot on

5 September 2018

The once-$9 bln medical testing firm’s technology never worked – something it covered up – and now Theranos is being wound down. Founder Elizabeth Holmes faces fraud charges. But she was right that patients shouldn’t have to wait and pay huge sums to know what’s wrong with them.

China Biologic suffers contaminated infusion

27 August 2018

The plasma-products maker rejected two buyout offers, including one worth $3.9 bln led by its former boss, in favour of a dilutive share sale at a discount to both. Investors are stuck with fuzzy maths and poor governance that show why China Biologic would be better off private.

Healthscope’s property trick is takeover poison

22 August 2018

Having rejected two acquisition bids, the struggling Australian health group will put A$1 bln of hospitals into a trust in which it will sell 49 pct - then rent the facilities back. The cash will be useful, but operating costs and risk will rise, deterring more generous suitors.

Consumers offer Ping An cover from market storms

21 August 2018

The $160 bln conglomerate's first-half earnings rose by just over a third, thanks to life and health insurance. Market clouds present dangers for an insurer with lots of investments, but its results suggest Chinese households can provide some protection from the squalls.

Icahn got it half right with Cigna battle

14 August 2018

The activist investor has backed away from his fight against the U.S. health insurer's $52 bln deal to buy Express Scripts. On merit alone, his opposition was justified. But for activists, that is no longer enough to win. Shifting shareholder rosters have changed the game.

Bayer’s cancer scare makes a bad deal worse

13 August 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 August 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 August 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 August 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 August 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 August 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 July 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 July 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 July 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 July 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 July 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 June 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 June 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 June 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 June 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.