Healthcare Business Recap: Universal Health Services Windfall, Watson Pharmaceuticals’ Acquisition

Universal Health Services (NYSE:UHS) expects to benefit by about $35 million, from a settlement with the U.S. government that is intended to replace the underpayment from the Medicare inpatient prospective payment system. UHS’ peer Tenet Healthcare reports that it expects $84 million from that settlement and has accordingly raised its full-year guidance.

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Watson Pharmaceuticals’ (NYSE:WPI) proposed acquisition of Actavis is said to be drawing much interest from banks, who want to help finance the $6 billion needed for the transaction. Bank of America (NYSE:BAC) leads the contestants for the prize, which consists of a $2 billion term loan, and a $4 billion bridge loan.

J.P. Morgan expects that sales of Edwards Lifesciences (NYSE:EW) new Sapien heart valve will disappoint, as finding patients ideal for the valve is a tough process. The analyst projects that Edwards will likely reduce its first quarter and sales 2012 guidance due to sales weakness.

Mako Surgical (NASDAQ:MAKO) gets a Neutral from Oppenheimer, as its coverage by that firm begins. It’s thought that the share price already takes into account the current chatter over Mako’s partial-knee replacement product and the intro of a new application.

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