UnitedHealth Stock Slips Amid Medicare Investigation; Boston Scientific to Acquire Penumbra for $14.5B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- UnitedHealth Investigation Impact: UnitedHealth Group (UNH) shares fell following a Senate committee investigation revealing the company allegedly used aggressive tactics to inflate diagnoses for Medicare payments, potentially undermining market trust and shareholder confidence amid ongoing civil and criminal probes.
- Medicare Payment Acceleration Program: UnitedHealthcare announced a pilot program in Oklahoma, Idaho, Minnesota, and Missouri aimed at reducing Medicare payment timelines to 15 days, providing immediate cash flow relief for struggling independent rural hospitals, thereby enhancing their competitive position in the healthcare market.
- Boston Scientific Acquisition Plan: Boston Scientific (BSX) has announced a definitive agreement to acquire heart device maker Penumbra (PEN) for approximately $14.5 billion in cash and stock, with the transaction expected to have a slight dilutive impact on adjusted EPS, indicating its strategic expansion in the cardiovascular device market.
- AbbVie Drug Pricing Agreement: AbbVie (ABBV) reached a three-year deal with the Trump administration to invest $100 billion in U.S. research and development over the next decade in exchange for tariff relief on drug prices, which is expected to enhance its competitive edge in the Medicare market and improve public perception.
Analyst Views on ABBV
Wall Street analysts forecast ABBV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ABBV is 248.67 USD with a low forecast of 204.00 USD and a high forecast of 289.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
15 Buy
9 Hold
0 Sell
Moderate Buy
Current: 216.750
Low
204.00
Averages
248.67
High
289.00
Current: 216.750
Low
204.00
Averages
248.67
High
289.00
About ABBV
AbbVie Inc. is a global, diversified research-based biopharmaceutical company. It is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Its product portfolio includes Immunology, Oncology, Aesthetics, Neuroscience, Eye Care and Other Key Products. Immunology products include rheumatology, dermatology and gastroenterology. Oncology products include Imbruvica, Venclexta/Venclyxto, Elahere and Epkinly. Aesthetics portfolio consists of facial injectables, plastics and regenerative medicine, body contouring, and skincare products. Its Neuroscience products include Botox Therapeutic, Vraylar, Duopa and Duodopa, Ubrelvy, and Qulipta. Eye Care products include Ozurdex, Lumigan/Ganfort, Alphagan/Combigan, Restasis, and other eye care. Other key products include Mavyret/Maviret, Creon, and Linzess/Constella. Its investigational candidate, bretisilocin, is for the treatment of patients with moderate-to-severe major depressive disorder (MDD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
