|Bid||56.46 x 1000|
|Ask||56.47 x 800|
|Day's Range||55.56 - 57.39|
|52 Week Range||43.40 - 79.11|
|Beta (3Y Monthly)||2.06|
|PE Ratio (TTM)||72.55|
|Earnings Date||Jul 30, 2019 - Aug 5, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||66.10|
CVS Health began a trial of a home dialysis system that could cut into a market controlled by Fresenius Medical and DaVita. But all three stocks fell.
CVS Health said on Wednesday it will start a clinical trial of its new home dialysis system this week, setting it up to compete directly with the two largest operators of U.S. dialysis centers, Fresenius Medical Care AG and DaVita Inc. It had announced last year that it was working on a home hemodialysis system, which would enable patients with end stage renal disease to have more frequent dialysis and potentially better health outcomes compared with clinic-based care. Without a transplant, patients with end-stage kidney disease require dialysis to clear their blood of waste and excess fluid, which involves spending three-to-five hours hooked up to a machine three times a week.
UnitedHealth's (UNH) second-quarter results are expected to be boosted by the revenue growth at UnitedHealthcare and Optum segments and increasing membership.
Fresenius appears better prepared than DaVita for market transition from outpatient to home dialysis caused by the Trump kidney initiative Continue reading...
Specifically, the U.S. Department of Health and Human Services has proposed potential changes to reimbursement policy that are likely to encourage home treatment for kidney failure. While the stocks of both companies look cheap following recent underperformance, we think DaVita's nearly 30% discount to our fair value estimate presents a compelling investment opportunity. The two primary modalities amenable to at-home treatment are hemodialysis and peritoneal dialysis.
Shares of dialysis company DaVita are up a day after President Trump issued an executive order that could upend kidney care in the U.S., and analysts say health-insurance companies could win, too.
On July 9, the Affordable Care Act's constitutionality was debated in the US Court of Appeals. How did healthcare stocks react?
The market had been much higher at one point in the day on Wednesday, buoyed by commentary from Federal Reserve Chairman Jerome Powell who all but said a rate cut was coming, and soon. But, even with the intraday pullback, the S&P 500 ended the day up 0.45%, hitting a record high in the process.Source: Allan Ajifo via Wikimedia (Modified)Tesla (NASDAQ:TSLA) gets a little bit of extra credit for keeping the market in the black. Shares of the electric carmaker were up nearly 4% on the heels of news it was planning to ramp-up production at its Fremont, California plant. Memory chip maker Micron Technology (NASDAQ:MU) was up 4% as well after the glut-beleaguered company announced it raised a few billion by issuing some well-received notes.At the other end of the spectrum, Levi Strauss (NYSE:LEVI) tumbled 12% after the jeans company said the second half of the year wasn't looking quite as promising as first believed.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best ETFs for 2019: The Race for 1 Intensifies None of those picks are great prospects headed into Thursday's session though. Rather, it's the stock charts of Davita (NYSE:DVA), Honeywell International (NYSE:HON) and Advanced Micro Devices (NASDAQ:AMD) that look like your best bets, even if not all for bullish reasons. Advanced Micro Devices (AMD)Advanced Micro Devices shares, in simplest terms, are at an inflection point. Although the rally since late last year has been persistent and rewarding, for the second time in a month AMD is knocking on the doors of record highs. If the bulls fail once again, this third try may not set up a fourth attempt anytime soon. Rather, this could serve as the pivot into a more prolonged downtrend, and the backdrop is anything but encouraging. Click to Enlarge * The ceiling in question is right around $34, plotted in white on both stock charts. This is the third time since mid-2018 it has been tested. * While the advance appears to have momentum, there's a stark lack of volume behind the gain thus far. * A breakout move past the $34 area could be catalytic, but if volume doesn't materialize in a big way, it could also be nothing but a setup for an even bigger wave of profit-taking. Davita (DVA)In a perfect world a stock's trading action would always make sense, and moves -- higher or lower -- wouldn't need prodding. We don't live or trade in a perfect world though.With that as the backdrop (and perhaps with a bit of irony thrown in), this week's drubbing of Davita shares may be the very thing they needed to restart a bigger-picture rally effort that ultimately failed to follow through last week. It was news that prompted the shakeup, which isn't ideal. It's still the hand traders were dealt though. * 10 Stocks to Sell for an Economic Slowdown Click to Enlarge * As of last Friday, DVA had just pushed above its 200-day moving average line, plotted in white on both stock charts. On Monday, that move was completely up-ended, by headlines. * Tuesday's miserable opening wasn't so miserable after all. With some help from the purple 50-day moving average and even more held with a semi-established floor around $50.76, Davita logged a convincing intraday reversal pattern. * Wednesday's follow-through was key, and on above-average volume to boot. Honeywell International (HON)Finally, it's far from being in deep trouble yet, but Honeywell International shares are slowly moving in that direction. It's the pace and nature of the slowdown, in fact, that's raising so many red flags.Either, with a runup that has far outpaced the broad market's gain since the very end of last year, the sheer risk of the rollover turning into something more merits a closer look. Click to Enlarge * It's loosely evident on both stock charts, put the daily chart's purple 50-day moving average line's flattening action best shows the gradual slowdown underway. * The clincher here would be a MACD crossunder on the weekly chart. Such signals have accurately marked sizable pullbacks a couple of times since early 2018. * It may have more to do with the season than the stock, but there's been minimal volume behind the worst of the bearish days that have started this slow, arching rollover.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 3 Big Stock Charts for Thursday: Davita, Honeywell and Advanced Micro Devices appeared first on InvestorPlace.
President Trump signed an executive order Wednesday that will encourage an increase in kidney transplants. This transplant diagnostic company stands to grow significantly, while dialysis companies will take a hit.
(Bloomberg) -- Three times a week, hundreds of thousands of Americans with end-stage kidney disease trudge to dialysis centers to get the treatment that keeps them alive. Costs are exorbitant and growing, and many patients aren’t even told there may be other options.Nephrologists say the system -- dominated by two companies -- is long overdue for an overhaul, and now President Donald Trump is trying to provide one. On Wednesday, he signed an executive order to push what administration officials called the biggest change to kidney care in decades.The administration’s goals include getting 80% of patients who would otherwise get dialysis at thousands of clinics around the U.S. into less-costly home care, or to an organ transplant. Health officials plan to launch a public awareness campaign to identify more patients at an early stage of sickness, and to take steps to boost the number of available organs.Dialysis “is like a full-time job for people,” Trump said at an event in Washington where he was flanked by sufferers of kidney ailments. “Doing this from the home is a dramatic, long overdue reform.”Trump promised his administration would everything possible to increase the supply of organs available for transplant by thousands per year.Dialysis centers are big business, dominated by two entrenched companies, DaVita Inc. and Fresenius Medical Care AG. Shares of both companies have fallen this week as news of the plan leaked out, with DaVita down 6.2% despite a gain on Wednesday, and Fresenius down 4.7%.“For 50 years we have basically had a stagnant system of how we treat people with chronic kidney disease,” said Health and Human Services Secretary Alex Azar, in a conference call before the signing.The U.S. has “too much in-center dialysis,” said Azar, who called the regimen “mentally and physically draining.” Dialysis in a clinic typically means spending hours in a chair multiple times a week, hooked up to a machine that helps clean the blood of toxins.Medicare spent $114 billion on kidney care in 2016, about a fifth of the health-care program’s total budget. Of that, $35 billion went to patients in the late stages of kidney failure, who need dialysis, according to a government-funded data registry.Those costs could soon explode, with the number of patients with advanced disease expected to grow from about 700,000 today to more than 1 million by 2030 thanks to obesity and aging baby boomers, according to one recent study.“I am not a Trump supporter at all, but this is one of the few things where I completely agree with him,” said Holly Kramer, a nephrologist at Loyola University Medical Center in Chicago and president of the National Kidney Foundation, in an interview on Tuesday before she flew to to Washington for Trump’s announcement. “There are so many issues with chronic kidney disease. It is the neglected stepchild of all chronic diseases.”Dominant DuoDaVita operates more than 2,500 dialysis centers in the U.S. and generated $10.3 billion in sales from dialysis in 2018. Fresenius runs almost 4,000 centers around the world and reported 16.5 billion euros ($18.5 billion) in dialysis revenue in 2018. Together, the companies have more than 70% of the dialysis market in the U.S., according to Bloomberg Intelligence. Both companies also offer home dialysis services.Peter Grauer, the chairman of Bloomberg LP, the parent company of Bloomberg News, is the lead independent director at DaVita.Doctors say that home dialysis, while harder to set up and not suitable for every case, is more convenient and easier on patients’ bodies. And it can be less costly to deliver because it eliminates the need for nurses and other fixed costs like real estate.“There is general sense there is under-utilization of home dialysis and under-exposure to to it,” said Jeffrey Berns, a nephrologist at the University of Pennsylvania. Patients are shunted to dialysis centers as a default, and once on it, they “rarely switch,” he said.Doctors and nurses aren’t always knowledgeable about the in-home options and go with the easiest choice, especially in cases where patients present to specialists with advanced disease on the verge of dialysis. There may also be a financial incentive to keep the clinics going because some doctors have joint ventures with dialysis centers, receiving a portion of the profits.Transplants are another area where there is considerable room for improvement. There are nearly 100,000 Americans waiting for a kidney transplant, and only about 20,000 get a transplant annually. Each year, thousands die waiting. In addition to increasing the availability of deceased-donor organs, doctors say there needs to be more education about the possibility of living-donor transplants.Different AbroadKidney-disease treatment doesn’t have to be done the way it is in the U.S. Only 12% of Americans start dialysis treatment at home, compared with 80% in Hong Kong and more than half in Guatemala, Azar said in a March speech where he previewed some of the administration’s plans. Azar’s father suffered from end-stage kidney disease.“It is under-penetrated right now because the system is dominated by large, for-profit dialysis providers,” said Michael Phillips, a doctor and managing partner at Intermountain Ventures, a unit of the hospital system Intermountain Healthcare.The Intermountain hospital system has started a project that helps identify kidney patients earlier in the process, and educate them on their options before they need dialysis or a transplant. The goal is to get half of patients who need it using at-home dialysis within the next five years, up from the low teens now, he said.At Johns Hopkins Medicine, doctors have more than doubled the number of dialysis patients getting in-home care in the past year, through a variety of education and training programs, said Chirag Parikh, head of the nephrology department there.Ultimately, though, he said what is needed is whole new technology that can make dialysis an easier process on the body.“We have gone through changes in iPhones and computers and the way we do defibrillators,” Parikh said. “But for kidney dialysis, nothing has changed in last 30 to 40 years.”(Adds closing shares in sixth paragraph. An earlier version of this story misstated Holly Kramer’s name.)To contact the reporter on this story: Robert Langreth in New York at email@example.comTo contact the editors responsible for this story: Drew Armstrong at firstname.lastname@example.org, Timothy AnnettFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
DENVER, July 10, 2019 /PRNewswire/ -- DaVita Kidney Care appreciates President Trump, the Administration and Secretary Azar for taking steps to improve the lives of kidney patients. "DaVita is encouraged that this Administration has taken steps toward holistic, value-based care for kidney patients.
The executive order addresses three major issues affecting the 100,000 Americans who are awaiting kidney donations and the even more who are facing kidney disease.
President Donald Trump celebrated the dismissal of a lawsuit related to his private companies on Wednesday, as he signed an executive order directing the government to revamp the nation’s care for kidney disease.
Shares of DaVita Inc. bounced 4.3% in afternoon trading Wednesday, after President Trump signed an executive order on kidney disease, aimed at cutting costs of dialysis treatments. The stock had tumbled 9.8% over the past two sessions in anticipation of the executive order. DaVita said late Tuesday that the Trump administration's initiatives are expected to support DaVita's investments to prevent kidney disease, encourage home kidney care and improve kidney transplantation rates. "We've been investing in capabilities to deliver holistic care that addresses our patients' needs beyond kidney disease, such as mental health, social services and nutrition," said Chief Executive Javier Rodriguez. "We will continue to work with the Administration and Congress to launch programs that address broader care opportunities." Shares of fellow dialysis services provider American Renal Associates Holdings Inc. rsoe 1.6%, after plunging 9.6% on Tuesday. Year to date, DaVita's stock has gained 6.8% and American Renal shares have plummeted 40.6%, while the SPDR Health Care Select Sector ETF has tacked on 8.1% and the S&P 500 has advanced 19.5%.
NEW YORK/WASHINGTON, July 10 (Reuters) - The Trump administration on Wednesday set goals to move more kidney disease treatment into patients' homes and increase transplants while reducing the U.S. reliance on more costly dialysis clinics. President Donald Trump signed an executive order underscoring these goals, and the U.S. health agency said it would test new payment structures, including one that rewards end-stage renal disease facilities and doctors who meet targets in these areas. The U.S. government spends $114 billion each year to treat chronic kidney disease and end-stage renal disease.
(Bloomberg) -- President Donald Trump will announce an overhaul of the U.S. approach to care for people with kidney disease on Wednesday, an effort intended to move more patients out of costly dialysis centers and increase transplants.Trump will direct Medicare to adjust payments for treatment of kidney disease to encourage patients to undergo dialysis at home, a person familiar with the plan said. Administration officials hope his proposal will also produce an additional 17,000 kidney transplants a year, the person said.Trump on Wednesday will sign an executive order on “advancing kidney health,” the White House said Tuesday night.Dialysis providers sank after reports on the plan. DaVita Inc. fell 5.3% Tuesday in New York, the most since May 29. American Renal Associates Holdings Inc., based in Beverly, Massachusetts, slid 9.6%.German rival Fresenius Medical Care AG said in a statement that it has been working for years on initiatives to expand access to home dialysis, transplantation and new models of value-based care for chronic kidney disease, and looks forward to hearing the administration’s proposals. The shares were little changed in Frankfurt.“Any drive to increase home dialysis rates should be a positive for Fresenius Medical Care,” Tom Jones, a Berenberg analyst, said in an email, pointing to , the company’s acquisition of NxStage Medical for $2 billion in February. Part of the rationale for the purchase was “anticipation of greater home dialysis use,” he said.The administration’s plan will also encourage earlier diagnosis of kidney disease, prevention, and the development of artificial kidneys, the person said. Medicare, the program for the elderly and disabled, pays for most treatment of kidney failure, also known as end-stage renal disease. The program spent more than $62,000 per ESRD patient in 2013, according to a 2018 report by the Congressional Research Service.“The prospect of losing patients who cover facility and staffing costs would crimp Ebitda near term, though an official proposal has yet to be made,” Bloomberg Intelligence analyst Jason McGorman wrote in a note earlier, addressing the potential impact on DaVita.Sell-side analysts have warned investors that Trump’s speech may bring some volatility for dialysis providers. Raymond James analyst Chris Meekins predicts the president could announce a goal of having 80% of kidney patients either receive a kidney transplant or use home dialysis by 2025.When asked about Trump’s upcoming announcement, the Department of Health and Human Services pointed to a speech Secretary Alex Azar gave in March that emphasized the need for earlier detection of kidney disease to allow for more in-home dialysis.Azar said at the time that 12% of Americans with ESRD start treatment with at-home dialysis, compared to 80% in Hong Kong. He also focused on reorienting the payment system so dialysis companies would not be discouraged from helping patients get a transplant.Barclays analyst Patrick Feeley said that the Trump administration is likely to echo these proposals. He doesn’t view them as a threat to the industry, and expects the established dialysis providers to benefit from any increase in home care.Providers have been targeting growth in home dialysis. CVS Health Corp. also plans to enter the field. The company said it is working to start the final study of its home hemodialysis device soon.Peter Grauer, the chairman of Bloomberg LP, is the lead independent director at DaVita.(Updates with Fresenius statement in fifth paragraph)\--With assistance from Anna Edney and Tim Loh.To contact the reporters on this story: Tatiana Darie in New York at email@example.com;Jennifer Jacobs in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, John Lauerman, Eric PfannerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- A hodgepodge of news this week is telling the confusing and contradictory story of President Donald Trump’s efforts to change American health care. On Monday, a federal judge blocked the administration’s efforts to force drugmakers to disclose the often astronomical list prices of medicines in their TV ads. It was intended to shame pharma into lowering prices, and would have been the first of the Trump administration’s major drug-cost initiatives to actually take effect. On Tuesday, oral arguments were set for a Department of Justice-backed case that could wipe out the Affordable Care Act. Wednesday will reportedly see the president reveal an ambitious set of initiatives intended to rein in spending on kidney costs. The kidney initiative is among the administration’s better notions, along with its effort to index some drug costs covered by Medicare to the lower prices available abroad. Yet even when the administration lands on a good idea in health care, it seems to get in its own way. The Trump-backed ACA lawsuit, for example, would directly undermine the kidney initiative and price-indexing plan. And while the president has a variety of other proposals in the works – from an effort to pass drug discounts directly to consumers to a plan to force hospitals to make their pricing transparent – many could be exposed to the kind of legal risks that killed the drug-ad initiative. It’s all part of a scattershot and often incoherent approach that isn’t as effective as it could be. Take the kidney-care push: this area of treatment is costly in part because the current system incentivizes expensive care at dialysis centers that are largely run by two companies: DaVita Inc. and Fresenius Medical Care AG. (Peter Grauer, the chairman of Bloomberg LP, is the lead independent director at DaVita.) The Department of Health and Human Services reportedly wants to change that dynamic with new payment models intended to shift patients to more cost-effective treatment at home. At least part of the administration’s ability to implement those models comes from the Center for Medicare and Medicaid Services’ Innovation Center, which was created by the ACA and is threatened by the lawsuit. The contradictions don’t end there. People with end-stage kidney disease are covered by Medicare, so the lawsuit wouldn’t strip their coverage. However, the administration’s plan reportedly emphasizes intervening before people get to the point where they need dialysis or transplants. Killing the ACA is at direct odds with that goal. It would see millions lose insurance coverage, would eliminate protections for people with pre-existing conditions like chronic kidney disease, and crimp access to preventative care. Though it is a long shot, the court case demonstrates the administration’s inconsistency in health care. Just about every health initiative would be harmed by the disruption that would result if this lawsuit succeeds, especially considering that the administration doesn’t have a replacement plan. If it were serious about keeping people off of dialysis or curing HIV, it would oppose this suit and stop other ongoing efforts that harm the ACA’s individual market and Medicaid.The administration hasn’t detailed an ACA alternative because its previous effort to pass one was a political disaster that helped Democrats seize control of the House of Representatives in 2018. Instead, its health-care efforts have largely been confined to executive orders and rule-making. That approach narrows the scope of what the administration can accomplish, and comes with significant risks. If a federal judge thinks that forcing the disclosure of drug prices in ads is an overreach, there’s clearly a chance that the administration’s more ambitious plans will also have issues. I’m rooting for the kidney effort. It targets a real problem and could have an impact, depending on the details. I’d be more optimistic about the plan’s chances if it were part of a cohesive set of policies that had Congressional backing, rather than the current jumble. To contact the author of this story: Max Nisen at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Max Nisen is a Bloomberg Opinion columnist covering biotech, pharma and health care. He previously wrote about management and corporate strategy for Quartz and Business Insider.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Davita stock pops as President Trump announces an overhaul of the U.S. approach to care for people with kidney disease. Yahoo Finance's Seana Smith and Scott Gamm discuss.