Healthcare Recap: Mead Johnson Hit By RUMOR, Questcor Goes OVER The Cliff
Who saw this coming? On Monday Texas became the most populous state to refuse participation in the expansion of Medicaid or to create a health insurance exchange, rejecting provisions of the Affordable Care Act. Wellpoint (NYSE:WLP), WellCare Health Plans (NYSE:WCG) and Centene Corp. (NYSE:CNC) are among Medicaid insurers that could be affected by states which opt-out, although the U.S. government will set up the insurance exchanges on its own if necessary.
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Mead Johnson (NYSE:MJN) shares plunged subsequent to a report that a baby milk product the firm sells in China was found to contain a banned additive. A Chinese site was responsible for the report; shares have come back a bit but they still closed at a loss. It’s known, however, that some of MJN’s competitors also are experiencing regulatory difficulties.
Shares of Questcor (NASDAQ:QCOR) lost over a fifth of their value on Tuesday, due to a harsh Citron Research report. Meanwhile, Piper keeps its Outperform, and defends the firm by contending that generic drugs do not comprise a risk to Acthar sales, and would require a 30-month stay if a filing were to occur. However, the possible threat from generics was only one of several points raised by Citron.
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