Healthcare Business Recap: Lilly Shares SPIKE On Study, HMS Shares REACT To Contract
The United States Justice Department wants additional information from both Amerigroup Corporation (NYSE:AGP) and WellPoint, Inc. (NYSE:WLP) concerning WellPoint’s $4.46 billion purchase of Amerigroup. In the meantime, the Department has extended the waiting period for the transaction’s closing, which would have expired on Wednesday. Amerigroup now believes that the deal should close in the fourth quarter.
Shares of Eli Lilly and Company (NYSE:LLY) spiked on word of two large evaluations which indicated that its experimental Alzheimer’s treatment detained the decline of cognition in some patients, although it did not meet its primary goals. The study which showed that the medication decreased the worsening of mental loss in mild to moderate patients was unexpected by experts, who had allowed the drug a less than 20 percent chance of showing a benefit.
Health benefits coordinator HMS Holdings Corp. (NASDAQ:HMSY) shares reacted in reverse to the news that the firm was awarded a three-year contract by the Commonwealth of Virginia, Department of Medical Assistance Services, to serve as the Commonwealth’s Medicaid Recovery Audit Contractor. Shares plunged in early trading but later came back by about half.
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