Blissful Friday, readers!
We have now a veritable feast of must-read options accompanying the most recent Fortune 500 record’s launch (I’ve included hyperlinks to a number of of them down under and can proceed to within the coming days). However I wished to spotlight one particular story, penned by our personal veteran journalist Shawn Tully, on the standing of the mixed CVS-Aetna behemoth.
CVS mega-deal with Aetna birthed a vertically built-in agency that its varied executives have argued will simplify affected person care by offering a “entrance door” of entry to medication at your pleasant neighborhood drugstore. The multi-pronged technique would incorporate insurer Aetna’s gigantic buyer base right into a retail pharmacy big that additionally occurs to regulate its personal pharmacy advantages enterprise and a slew of walk-in clinics for major care.
It’s an exciting–and ambitious–proposition. However these are the sorts of initiatives which will take a while to provide veritable outcomes.
“The $70 billion merger with Aetna made CVS the world’s largest well being care firm, with projected revenues of $250 billion in 2019. However to date it hasn’t paid off,” writes Shawn. “Within the first quarter of 2019, the brand new CVS posted earnings one-third decrease than the quantity the 2 firms had earned individually a 12 months earlier. An integration plan focusing on $750 million in financial savings ought to assist carry profitability.” He goes on to notice less-than-enthusiastic reactions from the broader investor market.
After all, there’s rather more to this type of company marriage than instant profitability or market worth progress; in well being care, issues take time. However I encourage you to learn Shawn’s deeply reported and insightful piece on probably the most extraordinary well being care M&As in latest historical past.
Learn on for the day’s information, and have an exquisite weekend.
Is social media enjoying a job in women’ suicide spike? A brand new research revealed within the journal JAMA Open Community on Friday finds that the suicide fee amongst younger individuals of each organic sexes has elevated since 2007–and whereas suicide tends to afflict boys at a better fee, the most important surge has been amongst younger women aged 10 to 14 in recent times. The analysis has led some specialists to induce deeper exploration of social media’s potential position within the pattern. “The truth that social media has turn out to be a major discussion board for interpersonal engagement in adolescence, a developmental interval when social contact is quickly rising and changing into more and more essential to well-being, makes this an space of nice potential affect and significance,” wrote Joan Luby, of Washington College Faculty of Drugs, and Sarah Kertz, of Southern Illinois College, in an accompanying opinion piece. (Fortune)
AbbVie faces setback for mind most cancers drug hopeful. Glioblastoma, among the many most intractable of cancers, has felled yet one more drug hopeful. This time, the sufferer is biotech big AbbVie’s depatuxizumab mafodotin, or ABT-414, which did not present any survival profit in opposition to the aggressive mind most cancers in a late-stage research. The truth that a mind most cancers drug proved disappointing is unsurprising; however, for AbbVie, that is yet one more knock to the corporate’s experimental most cancers drug pipeline, which has produced quite a few late-stage failures together with the therapy Rova-T.
THE BIG PICTURE
Missouri piles on with restrictive abortion invoice. Mere days after Alabama enacted essentially the most restrictive anti-abortion legislation within the nation, Missouri lawmakers adopted up by passing laws that will ban abortions after the eight week of being pregnant (effectively earlier than most girls know they’re pregnant). Missouri’s governor is predicted to signal it into legislation. The distinction between the 2 payments is that Missouri’s contains an exception for medical emergencies, which Alabama’s legislation doesn’t. Abortion opponents have brazenly admitted that such legal guidelines are supposed to be a conduit to finally putting down Roe v. Wade on the Supreme Courtroom. (Reuters)
Inside Google’s Civil Conflict, by Beth Kowitt
Male Mentors Are Leaning Out, by Ellen McGirt
Why the Giants Amongst This Yr’s Fortune 500 Ought to Intimidate You, by Erika Fry
Why Buyers Ought to Care Extra Concerning the Fortune 500 Than the S&P 500, by Matthew Heimer
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