Anthem Raises Profit Forecast For 2018, Offers Positive Outlook For 2019
The insurer reports profits for the third quarter that were higher than predicted with total revenue of $23.25 billion. GlaxoSmithKline also offers a rosy earnings picture for the past quarter, with sales boosted by its new shingles vaccine.
The Wall Street Journal:
Anthem Reports Earnings Growth, Raises Outlook
Anthem’s medical loss ratio, or the share of premiums spent on health costs, was slightly worse than analysts’ expectations for the third quarter, according to early notes from analysts. But the company also said the number was consistent with its expectations and improved its full-year MLR outlook. During the insurer’s earnings call, analysts asked about slightly higher costs it cited in Medicaid, and Ms. Boudreaux said the business was “performing solidly within our target margins” and should show “continued ongoing strong performance for the full year.” (Prang and Wilde Mathews, 10/31)
The Wall Street Journal:
Glaxo’s Shingles Vaccine Gave Earnings A Shot In The Arm
Demand for Shingrix, which is aimed at people age 50 and over, has outpaced Glaxo’s expectations since it launched the vaccine late last year. The company says it now expects sales of £700 million to £750 million ($893 million to $957 million) this year, up from previous guidance of £600 million to £650 million. The vaccine protects against shingles, a disease that leads to a painful rash and that is caused by the reactivation of the chicken pox virus in people whose immune systems have weakened with age. Shingrix got a boost when the U.S. Centers for Disease Control and Prevention last year gave the vaccine favored status over a rival, Merck & Co’s Zostavax. The CDC also recommended that adults who had previously received Zostavax should still receive Shingrix. (Roland, 10/31)