Diamonds and Dogs
Centene (CNC) jumped 5% to a six month high following better than expected earnings while also giving in line guidance. Earnings were helped by growth in its Obamacare individual business and along with the health insurer's efforts to turn around recently acquired Health Net. Early indications suggest if Obamacare is completely repealed and replaced the process may take several years and include a transition plan designed to minimize, if any, disruption to states or subsidized populations. Cantor Fitzgerald upgraded the stock to an overweight with a $85 price target.
Another CEO bites the dust. Teva Pharma (TEVA) dropped 6% to a new 52 week low after CEO, Erez Vigodman stepped down, making this the second high-profile management shake-up following the announcement of Siggi Olafsson's departure in December. Things have gone from bad to worse for Teva as the U.S. District Court ruled in favor of the TEva's competitor increasing likelihood of MNTA/Sandoz launching a generic version to TEVA's Copaxone 40mg Teva has also backed away from its long-term guidance issued in July.