CVS Making ‘Good Progress’ On Getting Regulatory Approval For Aetna Deal
CVS’s proposed takeover of Aetna, which would bring together around 10,000 CVS stores and the health insurer’s 22 million customers, is undergoing antitrust scrutiny.
Bloomberg:
CVS ‘Moving Forward’ With Aetna Deal, Profit Tops Estimates
CVS Health Corp. said it’s making “good progress” on getting regulatory approval for its $68 billion deal to buy health insurer Aetna Inc. -- one of two megamergers in the health-care industry that are under antitrust scrutiny. In the meantime, the drug retail giant has suspended its share buyback plan. The company, one of the U.S.’s leading providers of drug-benefits for employers and health plans, also signaled that some employers may be waiting to see how the sector will be reshaped before making major decisions on contracts that typically last three years. (Langreth, 5/2)
In other health industry news —
Reuters:
Nokia Close To A Deal To Sell Its Digital Health Venture
Nokia said it plans to sell its small digital health business, including activity trackers and smartwatches, to a co-founder of the venture. Digital health was one of the areas Nokia had been counting on for future growth opportunities amid a tough market for its mainstay telecom network equipment business. But the business failed to meet growth expectations, an internal memo showed in February after Nokia started a strategic review of it. (Rosendahl, 5/2)
Modern Healthcare:
Ascension Forges First-Ever Global Supply Chain Company To Reduce Costs
Ascension is partnering with a large Australia-based international hospital company to form what appears to be the first-ever global supply chain firm. A major goal of the joint venture between Ascension and Sydney-based Ramsay Health Care, announced Tuesday, is to reduce costs at Ascension's 151 U.S. hospitals and hundreds of other not-for-profit facilities to the levels in lower-cost countries. (Meyer, 5/1)
