Healthcare Business Recap: Cigna’s JV, Questcor Rebounds
Questcor (NASDAQ:QCOR) rebounds after it responds to last week’s negative report. The report questioned its “aggressive” marketing and business practices. Jefferies keeps a Buy rating on the shares with a $50 target believing that there is little substance to StreetSweeper’s allegations. StreetSweeper covered nearly half its 80,000 short position before issuing its report.
K-V Pharmaceutical (KV.A) shares sky-rocket after rival Columbia Laboratories’ preterm birth gel is said to be “not effective” by the Federal Drug Administration. Watson Pharmaceuticals (NYSE:WPI) is also up in light of the news.
Cigna (NYSE:CI) moves higher after announcing a joint venture with Indian conglomerate TTK Group to sell health insurance products across India. Cigna TTK is expected to begin operations in early 2013 and will build its workforce locally, pending approval by India’s regulatory authorities.
Coventry (NYSE:CVH) forecasts 10%-12% gains in Medicare Advantage membership this month, while Medicare Part D membership is seen rising 23%-25%. As such, Coventry expects to add more than $1.7 billion in new revenue this year, which is around a 14% gain.
Investing Insights: Forest Laboratories Inc. Earnings: Net Income Keeps Falling.