NEW YORK/BOSTON, Aug 20 (Reuters) – A few months ago, an
innovative partnership between Valeant Pharmaceuticals
and billionaire investor William Ackman to buy Botox maker
Allergan Inc looked like a blueprint for success. Now
some Valeant shareholders who backed the deal at its start are
questioning whether it will become reality.
A robust defense from California-based Allergan and
Valeant’s own weak second quarter financial performance have
pressured Valeant stock, which is down 6 percent this year after
doubling in 2013. Ackman, whose hedge fund Pershing Square
Capital Management owns nearly 10 percent of Allergan, is
digging in and told his own investors he is focused on getting a
deal done. Valeant also remains committed.
(Reuters) – Community Health Systems Inc (CYH.N: Quote, Profile, Research, Stock Buzz), one of the biggest U.S. hospital groups, said on Monday it was the victim of a cyber attack from China, resulting in the theft of Social Security numbers and other personal data belonging to 4.5 million patients.
That would make the attack the largest of its type involving patient information since a U.S. Department of Health and Human Services website started tracking such breaches in 2009. The previous record, an attack on a Montana Department of Public Health server, was disclosed in June and affected about 1 million people.
By Svea Herbst-Bayliss and Caroline Humer
(Reuters) – Botox maker Allergan Inc (AGN.N: Quote, Profile, Research, Stock Buzz) on Friday accused rival Valeant Pharmaceuticals International (VRX.TO: Quote, Profile, Research, Stock Buzz) and billionaire investor William Ackman of violating securities laws by using insider information as they prepared a takeover bid for the drug company.
In a civil lawsuit filed in federal court in California, Allergan said Ackman’s Pershing Square Capital Management and Valeant “hatched” an “improper and illicit insider-trading scheme” that allowed the hedge fund to buy Allergan shares, knowing about Valeant’s planned $51 billion takeover bid.
July 30 (Reuters) – U.S. health insurer Humana Inc
reported a lower profit owing to higher costs on Wednesday, as
mounting concerns about increased medical spending drove health
insurance industry shares lower for a second straight day.
Humana said its higher costs were related to medical
spending by new enrollees in the exchanges created under
President Barack Obama’s healthcare reform law, investments for
those exchanges and costly new hepatitis C drug treatments.
(Reuters) – Aetna Inc (AET.N: Quote, Profile, Research, Stock Buzz), the third-largest U.S. health insurer, reported a rise in medical costs on Tuesday, raising investor concerns that a long run of low growth in such costs might be ending and pushing shares in the industry lower.
U.S. insurer profits have benefited from several years of relatively low use of medical services by their members due to an economic downturn and higher out-of-pocket costs for patients.
July 24 (Reuters) – Boston Scientific Corp, which
makes medical equipment, on Thursday reported a slightly
higher-than-expected quarterly profit as improvements in its
heart device business helped drive revenue up 4 percent.
Boston Scientific said cardiac rhythm management sales,
which include implantable defibrillators and pacemakers, rose 4
percent to $497 million in the second quarter from a year
earlier after falling last quarter. Interventional cardiology,
which includes sales of stents, rose 1 percent to $528 million.
By Ransdell Pierson and Caroline Humer
(Reuters) – Allergan Inc (AGN.N: Quote, Profile, Research, Stock Buzz), which is fighting off a hostile bid from Valeant Pharmaceuticals International Inc (VRX.TO: Quote, Profile, Research, Stock Buzz), said on Monday that it would cut 13 percent of its global workforce as part of a restructuring meant to boost profits over the next six years.
Allergan said the cost reductions, which are part of its efforts to convince investors that it is a better value as a stand-alone company, would help increase annual earnings more than 20 percent between 2014 and 2019.
July 8 (Reuters) – An experiment changing how U.S. cancer
doctors are compensated cut healthcare costs by a third, with no
discernible decline in patient health, according to a three-year
study by insurer UnitedHealth Group Inc and five medical
Cancer treatment is one of the most expensive and fastest
growing categories of care in the United States. Oncologists and
insurers have been devising new incentives for doctors to
improve patient care while lowering costs.
NEW YORK and LOS ANGELES, July 1 (Reuters) – Allergan Inc
may take on debt to buy back its own shares as part of a
multi-faceted plan to thwart a $53 billion takeover bid by
Valeant Pharmaceuticals International Inc and
activist investor William Ackman.
The company is also considering making acquisitions of its
own and more spending cuts to increase shareholder value, Chief
Executive David Pyott said in an interview, outlining steps to
build support for Allergan, best known for its Botox
anti-wrinkle injections, to remain a standalone company.
By Caroline Humer and Ransdell Pierson
(Reuters) – The battle for botox maker Allergan Inc heated up on Tuesday as the company officially rejected a sweetened $53 billion takeover offer from Valeant Pharmaceuticals International and activist investor William Ackman.
Since Canadian drugmaker Valeant and Pershing Square Capital Management made a joint bid for the company on April 22, Allergan has stood firm against entreaties to sit down at the table and negotiate a deal.