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Thursday, April 30, 2020

Molina to buy Magellan Complete Care for $820M

Magellan Health (NASDAQ:MGLN) +15.2% after-hours on news that Molina Healthcare (NYSE:MOH) agrees to acquire the Magellan Complete Care line of business for $820M, net of certain tax benefits.
Magellan Complete Care served 155K members in six states, and amassed more than than $2.7B in revenues in 2019.
With the addition of MCC, Molina will serve more than 3.6M members in government-sponsored healthcare programs in 18 states and have 2020 pro-forma projected revenue of more than $20B.
The announcement was separate from Molina’s reported Q1 earnings, which edged analyst expectations.
https://seekingalpha.com/news/3567433-molina-to-buy-magellan-complete-care-for-820m

The Elephant In The Room Keeping Businesses From Reopening

Yes, COVID-19 kills people. But so does a collapsed economy. Finally, states are beginning to let more businesses open. But there’s a problem. A big one, that could keep crucial businesses closed.
Georgia allowed some businesses to open on Friday. Several other states will do that on May 1.
But some businesses might not open even when they can. Why? Because an employee or customer might get COVID-19 and sue them.
As long as someone might get sick, businesses might get sued. As long they’re sued, they could lose. They could face and lose dozens or hundreds of law suits. They could lose tens of millions of dollars. That would put the small and medium-sized business under. Why risk it? Why not wait?

A Warning

Lawsuits have already been filed against businesses over COVID-19. Cruise lines were the first businesses to get hit with suits. They’ve already lost almost a billion dollars worth of business. They won’t be sailing for at least another three months. With all the suits they might lose a lot more. (Suits against them have been hard to win in the past, but who knows how the pandemic will change the courts?)
Other businesses look at them as a warning. Small businesses that can’t afford lawyers are going to be very worried.
Some industries require close human contact. They include hotels, hair salons, daycares, gyms and restaurants. How are they going to achieve social distancing? They can’t guarantee employees or customers will always be safe. A wrongful death lawsuit was filed against Walmart over the death of an employee.
Some of the businesses that were allowed to open in Georgia aren’t doing so. Others are opening with numerous restrictions.

Businesses Shouldn’t be Liable

What’s the answer, then?
Protect businesses from being sued. More people are proposing this. President Trump said on Tuesday that he wants to shield businesses from liability. For example, he is going to order meat processing facilities to stay open, and will sign an executive order shielding them from lawsuits.
The U.S. Chamber of Commerce and several business groups are asking Congress to set a federal standard that limits liability for employers who follow CDC guidelines. White House economic advisor Larry Kudlow says reopened businesses shouldn’t be liable for coronavirus infections. Lawsuits may put them out of business. A writer at National Review urges state legislatures and Congress to pass laws shielding them. Both see that America needs businesses opening as fast as they can.
Some states are already working on this. The House and Senate in Utah passed a bill last Thursday to protect businesses. It would make business owners “immune from civil liability for damages or an injury” when someone has been exposed to COVID-19 while on the premises doing something associated with the business.
A law enacted in March in New York protects health care facilities and volunteer organizations from both civil and criminal liability due to COVID-19. While it shields businesses from negligence, they will still be liable for willful misconduct, recklessly or intentionally inflicting harm.

Protecting Themselves

Businesses can already protect themselves in some ways. But they also remain vulnerable. Employees who contract COVID-19 at work can file a worker’s compensation claim, which removes their right to sue. And they will have to prove they contracted the illness at work, which will not be easy. However, a handful of states have shifted the burden to the employer when it comes to essential employees. The states’ laws presume that the employee caught COVID-19 at work. However, a judge in Illinois issued a temporary restraining order against the rule after business groups filed lawsuits opposing it.
Businesses can also protect themselves to some extent by following the CDC guidelines. Only healthcare facilities are required to follow the guidelines, but businesses would be wise to. A court will take that into consideration when deciding a lawsuit. That means using social distancing, providing hand sanitizer, separating sick employees and possibly providing face masks.
The U.S. Equal Employment Opportunity Commission (EEOC) is allowing employers — for the time being — to take the temperatures of on-site employees, even though this constitutes a medical exam. Businesses should also follow workplace guidelines from the Occupational Safety and Health Administration. One lawyer recommends that businesses have employees sign a waiver making them aware of potential COVID-19 exposure.
Of course, there is always a risk. Businesses with immunity might shirk their responsibility to take precautions against the virus. But so far it appears from media reports that the businesses reopening are taking great precautions. They should not be punished. The country needs them open. A sensible law should protect them.
https://www.zerohedge.com/health/elephant-room-keeping-businesses-reopening

ResMed stock rises as earnings beat on ventilator production

ResMed Inc. RMD, -0.63% shares rose in the extended session Thursday after the medical equipment maker topped Wall Street estimates as it ramped up its manufacturing of ventilators amid the COVID-19 pandemic. ResMed shares rose 6.2% after hours, following a 0.6% decline in the regular session to close at $155.32. The company reported fiscal third-quarter net income of $163.1 million, or $1.12 a share, compared with $105.4 million, or 73 cents a share, in the year-ago period. Adjusted earnings were $1.29 a share, compared with 89 cents a share in the year-ago period. Revenue rose to $769.5 million from $662.2 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $1.03 a share on revenue of $724.1 million. “We have rapidly pivoted our business to respond by ramping up production of life support ventilators, non-invasive ventilators, and ventilation mask systems for the people who need them most, wherever they live,” said Mick Farrell, ResMed chief executive, in a statement.
https://www.marketwatch.com/story/resmed-stock-rises-as-earnings-beat-on-ventilator-production-2020-04-30

Bristol, Acceleron Anemia Treatment Gets Nod From Euro Regulators

Bristol Myers Squibb Co. and Acceleron Pharma Inc. said Thursday that a European Medicines Agency’s committee has recommended the approval of its anemia treatment for adults.
The regulator’s Committee for Medicinal Products for Human Use issued a positive opinion of the advanced Phase 3 trial of Reblozyl.
Reblozyl treats adult patients with transfusion-dependent anemia due to either low to intermediate myelodysplastic syndrome, a group of bone marrow failure disorders, or beta thalassemia, a blood disorder that reduces hemoglobin production.
“If approved, Reblozyl would be the first erythroid maturation agent approved in the EU, representing a new class of therapy for eligible patients,” the companies said.

https://www.marketscreener.com/BRISTOL-MYERS-SQUIBB-COMP-11877/news/Bristol-Myers-Squibb-Acceleron-Pharma-s-Anemia-Treatment-Gets-Nod-From-European-Regulator-30508146/

Connecticut to begin phased reopening of coronavirus lockdown May 20

Connecticut will begin slowly reopening from its coronavirus lockdown beginning May 20, Gov. Ned Lamont announced Thursday.
Lamont unveiled a four-phase approach that will take effect next month — as long as cases and hospitalizations continue to drop, among other contingencies.
“If you want to make sure that this pandemic stays under control, we want to do everything we can to make sure there are no flare-ups around the region,” Lamont said.
Come May 20, the state plans to allow the reopening of outdoor areas at restaurants and bars; outdoor museums and zoos; offices, retail outlets and boutique shops.
Companies will still be urged to keep their employees working from home if possible.
Lamont, who designed the plan with an advisory committee that includes business groups, was confident hair and nail salons will also be allowed to reopen “on a limited basis” if his advisors can develop safe social distancing regulations.

“It’s tougher to enforce social distancing in an environment like that,” he said of the hair-styling hubs. “But based upon what we see in Georgia and other places — people aren’t flooding in. People are doing it by appointment.”
Businesses and events where it’s more difficult to practice social distancing will take longer to open, Lamont said. The final phase bringing a near-normal level of business might not come for 10 months, the governor added.
Lamont said more guidance for restarting school and other large gatherings would come next week.
The plan will only continue if the state can also ensure it maintains adequate supplies of protective gear, tests and hospital capacity and enough resources to perform contact tracing of confirmed COVID-19 patients, Lamont said.
“We’re monitoring this carefully … expansion of the ability to provide those masks to more and more stores, more and more employees, more and more factories, is key to our reopening strategy,” he said.
Connecticut has so far confirmed at least 27,700 coronavirus cases and has suffered 2,257 related deaths.
https://nypost.com/2020/04/30/when-connecticut-will-begin-phased-reopening-from-coronavirus/

Delta tells passengers to mask up

Delta Air Lines (NYSE:DAL) says passengers will be required to wear masks starting on May 4.
The new policy requires travelers to wear a mask or other face covering on planes except for meals, in check-in areas, premium lounges and boarding gate areas. The airline is also suggesting passengers wear them in security lines and in restrooms.
https://seekingalpha.com/news/3567383-delta-tells-passengers-to-mask-up

Los Angeles coronavirus testing website strains as free appointments fill up

Less than 24 hours after Los Angeles became the first major U.S. city to offer free coronavirus tests for all, a website used for sign-ups strained under the demand on Thursday as appointments were completely booked for anyone not showing symptoms.
Los Angeles Mayor Eric Garcetti announced the free testing on Wednesday, saying tests were now available to anyone in the county of roughly 10 million people, although priority would be given to healthcare workers and people showing symptoms of COVID-19, the respiratory illness caused by the coronavirus.
“If you think you have COVID-19, if want the reassurance that you do not, if you’ve been around people that you have seen with symptoms, get a test,” Garcetti said at his daily coronavirus briefing. “You can’t put a price on the piece of mind of knowing that you can’t infect somebody around you.”
The tests were funded in part by CORE, a nonprofit organization co-founded by actor Sean Penn, using a $375,000 grant from the Rockefeller Foundation.
Garcetti conceded that the number of test centers currently open may not initially be able to handle demand.
On Thursday the website used to schedule appointments showed there were none available for people not showing symptoms or for those who are not “front-line workers” who interact with the public.
Local media reported the website had crashed several times since its launch shortly after the mayor’s announcement.

As of Thursday afternoon Los Angeles County had recorded 1,057 deaths from COVID-19 and more than 22,500 positive cases.
The entire state of California remains under strict “stay-at-home” orders meant to slow the spread of coronavirus while some other states begin to reopen their economies.
Garcetti said on Wednesday that large-scale testing of Los Angeles County residents was an important step toward loosening those restrictions.
https://www.reuters.com/article/us-health-coronavirus-los-angeles/los-angeles-coronavirus-testing-website-strains-as-free-appointments-fill-up-idUSKBN22C3QJ