With Upbeat Earnings Report, Anthem Vows To Fight Federal Opposition To Merger With Cigna
The insurance giant tops analysts' expectations for the second quarter. It says that the planned $45 billion merger with Cigna is needed to help provide leverage to negotiate better prices for consumers and make it easier for the company to keep selling plans on the health law's online marketplaces.
The Wall Street Journal:
Anthem: Getting Past Cigna Merger Blues
Anthem hasn’t given up on its merger with Cigna just yet. But second-quarter results suggest the backup plan isn’t a bad alternative. Anthem, the second-largest U.S. health insurer by membership, reported sales of $19.9 billion and adjusted earnings of $3.33 a share on Wednesday morning. That topped analyst estimates, but the stock traded lower. Higher-than-expected medical expenses were to blame. Those amounted to 84.2% of premium revenues, more than 2 percentage points higher than a year ago. Anthem blamed the squeeze in part on margin pressure in its Medicaid business, which is Anthem’s fastest-growing membership segment. (Grant, 7/27)
In other national health care news —
The Washington Post:
A New Formula For Exercise? Study Suggests 1 Hour Of Activity Per 8 Hours Of Sitting
If you fear you're doing irreparable damage to your body because your white-collar job keeps you sitting at your desk from 9 to 5, or you regularly spend entire weekends sprawled out on your couch binge-watching Netflix, there's some good news just out from sports medicine researchers. According to a study published in The Lancet, all is not lost. You may be able to "make up" for your increased risk of death due to a sedentary lifestyle by engaging in enough physical activity. So just how much is enough? (Cha, 7/28)
The New York Times:
Alzheimer’s Drug LMTX Falters In Final Stage Of Trials
A new type of drug for Alzheimer’s disease failed to slow the rate of decline in mental ability and daily functioning in its first large clinical trial. There was a hint, though, that it might be effective for certain patients. The drug, called LMTX, is the first one with its mode of action — trying to undo so-called tau tangles in the brain — to reach the final stage of clinical trials. So the results of the study were eagerly awaited. The initial reaction to the outcome was disappointment, with perhaps a glimmer of hopefulness. (Pollack, 7/27)
The Wall Street Journal:
Vertex Pharma Loss Narrows As Cystic Fibrosis Drug Sales Grow
Vertex Pharmaceuticals Inc. said its second-quarter loss narrowed, as sales of its cystic fibrosis drugs continued to grow. The Boston-based biopharmaceutical company’s top- and bottom-line results beat expectations. Its drug Orkambi, which received U.S. Food and Drug Administration approval roughly a year ago, treats patients with a genetic mutation that is the leading cause of the disease. The drug combines Vertex’s Kalydeco, which treats a different genetic type of cystic fibrosis, with another Vertex compound. (Stynes, 7/27)
The New York Times:
The ‘Ice Bucket Challenge’ Helped Scientists Discover A New Gene Tied To A.L.S.
It turns out those much-mocked Ice Bucket Challenge videos helped do a lot of good. Two summers ago, the challenge, designed to raise money for research into amyotrophic lateral sclerosis, also known as Lou Gehrig’s disease, took the internet by storm. Supporters ended up raising over $115 million for the A.L.S. Association. Over two years, money from the challenge has helped fund the research and development of treatment drugs and has been used as prize money to entice people to design technology for people living with the disease, which causes a rapid breakdown in a person’s ability to control muscle movement. (Roger, 7/27)