Healthcare Biz Recap: Forest Laboratories Icahn ATTACK, Supreme Court JITTERS

The United States Supreme Court is supposed to rule this month on the Constitutionality of parts of the Affordable Care Act (Obamacare), and analyst Greg Harmon is advising certain big cap pharmas – Bristol-Myers (NYSE:BMY), Eli Lilly (NYSE:LLY), Merck (NYSE:MRK), and Pfizer (NYSE:PFE) – that based upon the upwards movements of their stocks, they are going ‘to like the outcome’ of the ruling. All are yielding close to 4 percent or more, and Harmon think they are on the edge of ‘long-term breakouts’.

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Forest Laboratories (NYSE:FRX) is currently experiencing a Carl Icahn Attack, as the activist investor nominated four directors to the board, and asks to inspect the firm’s books and records for data concerning certain issues, that include its 2013 forecast, a share repurchase, and compensation paid to certain company executives. Likely in response, CEO Howard Solomon points out 9 drugs – including 5 already approved – that should help the firm eventually outweigh the loss of patent protection for its antidepressant Lexapro.

Abbott Labs (NYSE:ABT) wants to obtain debt facilities totaling $14.5 billion, in order to refinance existing debt and to ease its separation into two listed companies, says a Reuters report. Merrill Lynch (NYSE:BAC), Barclays (NYSE:BCS), JP Morgan (NYSE:JPM) and Morgan Stanley (NYSE:MS) will conduct the transaction, which will amount to the largest loan package so far in 2012.

Shares of Medgenics (MDGN) pop, following word that the firm’s Infradure Biopump has received an Orphan Drug Designation from the FDA to treat hepatitis D. Perks from the designation include grant money, certain tax credits and seven years of a virtual patent, as well as the possibility of an expedited regulatory process.

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