Who saw this coming? On Monday Texas became the most populous state to refuse participation in the expansion of Medicaid or to create a health insurance exchange, rejecting provisions of the Affordable Care Act. Wellpoint (NYSE:WLP), WellCare Health Plans (NYSE:WCG) and Centene Corp. (NYSE:CNC) are among Medicaid insurers that could be affected by states which opt-out, although the U.S. government will set up the insurance exchanges on its own if necessary.
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Mead Johnson (NYSE:MJN) shares plunged subsequent to a report that a baby milk product the firm sells in China was found to contain a banned additive. A Chinese site was responsible for the report; shares have come back a bit but they still closed at a loss. It’s known, however, that some of MJN’s competitors also are experiencing regulatory difficulties.
Shares of Questcor (NASDAQ:QCOR) lost over a fifth of their value on Tuesday, due to a harsh Citron Research report. Meanwhile, Piper keeps its Outperform, and defends the firm by contending that generic drugs do not comprise a risk to Acthar sales, and would require a 30-month stay if a filing were to occur. However, the possible threat from generics was only one of several points raised by Citron.
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