About health insurance/insurers
Cigna inks deal to sell Medicare business to HCSC for $3.7B “Cigna will sell off its Medicare business to Health Care Service Corporation in a deal valued at $3.7 billion, the company announced Wednesday.
HCSC will acquire Cigna's Medicare Advantage, Part D, supplemental benefits and CareAllies businesses, and the parties expect the deal to close in the first quarter of 2025. In addition, the Blues insurer has entered into a four-year arrangement with Cigna's Evernorth subsidiary, which will continue to provide pharmacy services to the Medicare plans should the sale close.”
Comment: Cigna announced an expansion of its Medicare business line last September. What changed so quickly? One challenge for HCSC is how it will enter the many states where it does not currently do business and compete with other Blue Cross/Blue Shield plans.
ACOs to receive $20M in advance investment payments A good summary of the current status of ACOs.
About pharma
Cardinal Health acquiring Specialty Networks to expand tech offerings for independent practices “Healthcare product distributor and data analytics services company Cardinal Health has announced a $1.2 billion cash deal to acquire Specialty Networks, which the former said will help it expand across specialty therapeutic areas and enhance other provider offerings.”
GSK confirms Arexvy is a blockbuster but says the RSV battle has just begunBeaten to the punch by Pfizer in developing a vaccine for COVID, GSK has regained some of its lost luster as a vaccine powerhouse with its advancement of respiratory syncytial virus (RSV) shot Arexvy.
Wednesday, when GSK reported its quarterly and annual earnings, it confirmed that Arexvy was blockbuster in its first year on the market. And it took the company just two quarters—or “four months” as CEO Emma Walmsley was quick to point out during a conference call—to accomplish the feat as Arexvy generated sales of 1.2 billion pounds sterling ($1.5 billion).
Making the achievement that much more satisfying for the British pharma major is that it stared down a challenge from Pfizer. A day earlier, Pfizer reported 2023 sales of its RSV vaccine Abrysvo at $890 million.”
And in a related story: GSK tips 12 blockbuster launches to soften HIV patent loss, power sales toward $50B
Biogen officially chucks Aduhelm “Soon going on two years since it pulled back investment for Aduhelm (aducanumab), Biogen is now officially closing the book on the Alzheimer's disease drug, which has been a commercial flop since its controversy-ridden accelerated approval from the FDA back in 2021. In a statement Wednesday, Biogen said it has also terminated a licensing deal for the anti-amyloid antibody, with all rights reverting to Neurimmune.”
About the public’s health
Recommended Adult Immunization Schedule, United States, 2024 FYI
CDC’s 2022 STI Surveillance Report underscores that STIs must be a public health priority “In 2022, more than 2.5 million cases of syphilis, gonorrhea, and chlamydia were reported in the United States. The most alarming concerns center around the syphilis and congenital syphilis epidemics, signaling an urgent need for swift innovation and collaboration from all STI prevention partners. In addition to the syphilis epidemic worsening, reported gonorrhea cases declined for the first time in at least a decade while reported chlamydia cases were level.”
Comment: The number of cases of syphilis has not been this high since 1950!
The Healthiest & Unhealthiest Communities in the U.S. FYI. Eight of the top ten are from different states. Six of the lowest rated are in Texas, three in Arizona and one in Louisiana.
About healthcare IT
DOJ’s Healthcare Probes of AI Tools Rooted in Purdue Pharma Case “Justice Department investigators are scrutinizing the healthcare industry’s use of AI embedded in patient records that prompts doctors to recommend treatments.
Prosecutors have started subpoenaing pharmaceuticals and digital health companies to learn more about generative technology’s role in facilitating anti-kickback and false claims violations, said three sources familiar with the matter. It comes as electronic health record vendors are integrating more sophisticated artificial intelligence tools to match patients with particular drugs and devices.”
About health technology
Ultima Genomics launching high-end DNA sequencers that can read genome for $100 “Ultima Genomics, an upstart some observers have called a ‘dark horse’ in the world of DNA sequencing, will soon launch a line of high-power instruments that can read a human genome for as little as $100, the company’s leadership told STAT.
The sequencer, dubbed the UG 100, is a $1.5 million machine that can read up to 20,000 human genomes a year. The reagents required to operate the instrument cost as little as $1 per billion sequenced DNA bases; that translates to $100 per genome assuming each base in the 3-gigabase human genome is read 33 times, a common industry standard. The company plans to officially launch the product at this year’s Advances in Genome Biology and Technology meeting, which kicks off in Orlando, Fla., on Feb. 5.”
What to know about Elon Musk's Neuralink, which put an implant into a human brain A really good explanation of this technology.
AI-Powered Alzheimer’s Diagnosis Accelerator Receives De Novo OK “The product uses AI algorithms to study brain MRI results and generates a score predicting the likelihood of a patient’s progression to Alzheimer’s within five years. San Francisco-based Darmiyan expects BrainSee to reduce both the emotional and financial hardships of aMCI patients with a lower risk of progression. Physicians can now access the platform through a secure web portal.”
About healthcare finance
M&A in Healthcare and Life Sciences: A Shrinking Margin for Error in Deals “At a Glance
In 2023, deal volume declined across sectors, but deal value rose because of notable megadeals in pharma and medtech.
Revenue growth is more important than margin growth in healthcare, making M&A an attractive path—and the industry has a lot of cash.
80% of healthcare executives surveyed expect to do the same amount or more deals in 2024.
As the margin for error shrinks, dealmakers must double down on fundamentals to improve their M&A strategy and capability.”
Comment: I do not agree with the second point. Many companies are growing revenue but, because of expenses, are not producing profits. For example, look at VillageMD, which Walgreens bought.