Category Archive for "Healthcare"

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CVS/TGT: What Does the Store-In-Store Strategy Mean for RAD?

If we assume CVS cannot repeat the TGT store-in-store deal with other major mass merchants, but can do such a deal with a single supermarket (who would likely impose limits on further deals with other supermarkets), its next best option

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A Strategic Look at CVS/TGT; Why We’re Still Bullish on RAD

CVS’ acquisition of TGT’s pharmacies raises from 17.6% to 22.7% the percent of the US population living in areas where CVS cannot be excluded from a retail pharmacy network (at least one that complies with commonly-used proximity standards). And, the

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ACA at the Supreme Court: Subsidies Are Here to Stay, Even if SCOTUS Finds for King

Congress cannot repeal the ACA; the President would almost certainly veto a repeal bill, and Republicans lack the two-thirds votes required in both chambers to overturn. (Republicans have 56 percent of House and 54 percent of Senate seats) And, Congress

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US Drug Pricing Stalls. Uh-Oh …

Growth in US brand pharmaceuticals’ list prices has accelerated – but discounts are growing even faster. As a result, on average US brands’ net price growth is very nearly zero Net price growth is negative in 6 of the 10

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A WBA/RAD or CVS/RAD NEWCO as a Counterweight to Narrowing Retail Pharmacy Networks

This note updates our argument that US retail pharmacy networks are likely to narrow, compressing pharmacy dispensing margins – and in particular focuses on our belief that a WBA/RAD or CVS/RAD NEWCO is better able to withstand such margin pressures

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SSR Health New Product Approval Portfolios & Supporting Data Update

Drug, biotech, and research-based spec pharma stocks tend to outperform their peers in the year or so before and after regulatory actions (‘PDUFA’ dates) on major new products, with a large portion of total risks being concentrated in the days

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ABC/CAH/MCK: US Generic Inflation Continues in 1Q15

On a sales-weighted basis, prices (paid by retailers) for US generics rose 4.7% in 1Q15, substantially faster than in 4Q14 (0.5%), and on par with the average pace of inflation (5.1%) seen since early 2013 All else held equal, generic

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ABBV/PCYC: Imbruvica and ABT-199 are Synergistic

ABBV’s acquisition of PCYC raised eyebrows, both because of the valuation placed on PCYC, and because ABBV has a promising lead compound (ABT-199) being developed for the same B-cell malignancies treated by PCYC’s main product (Imbruvica) Much debate centers on

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SNY: The (multi-faceted) Bull Case

We believe SNY is undervalued, for 3 independent reasons, any one of which is sufficient to show the shares are undervalued With partner REGN, SNY is one of two entrants (the other being AMGN) in the emerging PCSK9 class. Our

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CVS, MCK, RAD, WBA: How WBA or CVS can fight narrowing retail networks – buy RAD

US retail pharmacy dispensing margins have grown to a point at which forcing them lower is a priority for drug benefit designers. Because the US has roughly 34% more pharmacy outlets than it needs, this can be (and is being)

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