Category: Healthcare

Key expectations from hospitals and healthcare space | Q3FY24 earnings..

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In the healthcare space, hospitals are expected to report mid-teen growth driven by the average revenue per occupied bed (ARPOB), aided by an improved payor and case mix.

Occupancies, however, could be sluggish for hospitals due to festival season and children’s holidays. Now analysts expect one to two more quarters of growth for hospitals till the high base starts to probably impact growth.

Stock specific – Apollo Hospitals could report as much as over 50% year-on-year growth in profit led by lower losses in Apollo HealthCo. Operational losses are expected to reduce to as much as around ₹10 crore versus ₹38.7 crore according to some analysts for Apollo HealthCo.

The company saw minimal bed addition, which is likely to keep the hospital revenue growth restricted this quarter and the EBITDA growth for the hospital business to around 2-3%.

Medanta Global Health could see occupancies reduced by around 200 to 300 basis points (bps) quarter on quarter due to the festive season. ARPOBs could rise as much as 9% year-on-year. Analysts will be watching for commentary on increased competition in the Indore market for Medanta in particular.

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For Max Health, the Street is expecting double-digit growth of around 14% YoY with stable average revenue per occupied bed sequentially. When it comes to diagnostic companies, one should expect revenue to be driven by volumes. However, one should watch for the festive season to impact the testing numbers.

Dr Lal Pathlabs is expected to report around a 15% growth led by a low base, Metropolis has indicated witnessing an early double-digit growth in terms of revenue for its core business of around 12% YoY.

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Focus on key segments such as preventive testing should aid overall numbers. For example, Jaanch and Arogyam from Thyrocare and premium and specialised testing for Metropolis were the fastest-growing segments for the company in Q2.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

American Cancer Society report unveils alarming trends in younger population

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The American Cancer Society’s recent annual report reveals concerning trends in cancer incidence, particularly among the younger population in the United States. There is a noticeable increase in cancers like breast and colon cancer among those under 50. Colon cancer, in particular, has become the leading cause of death among men below 50 and the second leading cause of death in women below 50. When combined, colon and breast cancer now surpass lung cancer as the primary cause of cancer-related deaths in individuals under 50.

Additionally, the report indicates a rise in cancer diagnoses among middle-aged individuals (50-64 years old) compared to the mid-1990s, contrasting with a 3% decline in cancer diagnoses among those aged 65 and above from 1995 to 2020.

Despite these concerning trends, there is positive news from the American Cancer Society. Overall cancer-related deaths are decreasing, attributed to factors such as reduced smoking rates, advancements in treatment, and improved early detection for certain cancers.

The report also highlights a significant decline in cervical cancer rates among women in their 20s, attributed to the introduction of the HPV vaccine.

So, the broad takeaway for us? Focus on reducing risk factors, such as smoking, and prioritize early and regular screenings, such as mammograms, papsmears for women and PSA tests for men. The report underscores the importance of heeding doctors’ recommendations for regular tests. Additionally, find out from your doctor about the HPV vaccine and whether you or someone in your family is eligible for it.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apollo Hospitals eyes expansion with ₹3,000 crore investment over 3 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Apollo Hospitals is looking to invest ₹3,000 crore over three years to fund its expansion.

Sangita Reddy, Managing Director of Apollo Hospitals, told CNBC-TV18 that, as part of the expansion,  the group is also planning to add 2,000 beds to its facilities over the next three years.

Highlighting Apollo Hospitals‘ commitment to cutting-edge medical technology, Reddy revealed an investment of ₹8 crore in the upcoming AI-precision oncology centre in Bangalore.

“We plan to open another 25 such centres across the country over a period of time,” she added.

Commenting on current occupancy trends, Reddy expressed optimism, particularly noting robust occupancies in Karnataka. “We are witnessing very healthy occupancies, especially in Karnataka. It’ll be a strong growth trajectory for us this year,” she remarked.

Despite the ambitious expansion plans, Reddy clarified that the company is not currently exploring private equity (PE) investments.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Aster DM board to meet in February to consider dividend, says Chairman Azad Moopen

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Aster DM Healthcare, a leading public-based premium healthcare provider, is gearing up for a significant milestone as its board prepares to meet in February to consider the issuance of dividends. This announcement marks the company’s first dividend payout since its listing in 2018.

Speaking to CNBC-TV18, Azad Moopen, Founder and Chairman of Aster DM Healthcare, revealed that the board is considering a dividend distribution in the range of ₹110 to ₹120 per share. Moopen emphasized that 70 to 80% of this decision has already been finalised by the board.

Moopen highlighted the company’s comfortable financial position in India, stating that the balance sheet is robust, especially when excluding the GCC. He mentioned that the remaining funds, not allocated for expansion opportunities, could potentially be distributed as dividends or utilised for the benefit of shareholders.

“So we don’t want to unnecessarily hold funds out. So maybe there is an opportunity for us to give further dividends or some way in which to give to the shareholders if we are not using it.”

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The final decision on the dividend distribution is expected to be made after the board meeting in February. Moopen expressed optimism about completing the entire process by March, following the completion of voting. The funds will be transferred to India, and the board will officially declare the dividend.

Interestingly, the promoters of Aster DM Healthcare intend to use the funds from the dividend payout to buy stakes in the Gulf business. Additionally, there are plans to address the leverage on the stock, with a focus on reducing the total leverage of around $80 million.

Moopen stated that the actual leverage is less than 10%, and efforts will be made to eliminate this debt over the next 6 months to 1 year.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mastercard to introduce virtual card for medical claim payment

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Payment network processor Mastercard is set to introduce a virtual card for medical claim payment solution in partnership with one of the leading financial institutions in India and a cloud-based health tech platform Remedinet. 

The company added that the facility will be available at all insurance-network hospitals in India on the Remedinet platform. The end-to-end solution will function by embedding virtual cards within the health tech platforms that connect payers and healthcare providers, such as Remedinet, using API connectivity.

Mastercard aims to ease the back-end of cashless claims by connecting hospitals, insurers and third-party administrators in India. 

Mastercard suggested that the virtual cards will provide a critical working capital solution by making the payout process nearly immediate. The virtual cards within the health tech platform would also provide detailed transaction data with the claim settlement information for all the bills paid with it.

This provides several benefits to insurance companies making the claim payment, including greater transparency into the claim status as well as easier and automated reconciliation.

“We’re on a mission to integrate our technology into platform providers to drive seamless B2B payment experiences at greater scale,” said Chad Wallace, global head of Commercial Solutions, Mastercard, “As we assessed industries where we can contribute with impact, healthcare emerged as a critical industry to unlock payment efficiencies.” 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID-19: India logs 1,226 cases of JN.1 variant, highest from Karnataka, Andhra Pradesh

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A total of 1,226 cases of COVID-19 sub-variant JN.1 have been reported in the country so far with Karnataka and Andhra Pradesh recording the highest number of cases till now, according to INSACOG on Thursday.Da ta compiled by the Indian SARS-CoV-2 Genomics Consortium (INSACOG) showed that 17 states and UTs have detected the presence of the variant.

Karnataka has detected 234 cases of JN.1 sub-variant followed by Andhra Pradesh (189), Maharashtra (170), Kerala (156), West Bengal (96), Goa (90), Tamil Nadu (88) and Gujarat (76). Rajasthan recorded 37 JN.1 cases, Telangana 32, Chhattisgarh 25, Delhi 16, Uttar Pradesh 7, Haryana five, Odisha three, and Uttarakhand and Nagaland one each, according to the data accessed by PTI.

The Centre has asked the states and Union Territories to maintain a constant vigil amid an uptick in the number of Covid cases and the detection of the JN.1 sub-variant in the country.

The states have been urged to ensure effective compliance with the detailed operational guidelines for the revised surveillance strategy for COVID-19 shared with them by the Union Ministry of Health and Family Welfare. The states have also been asked to regularly monitor and report district-wise cases of influenza-like illness (ILI) and severe acute respiratory illness (SARI) from all health facilities for early detection of a rising trend of Covid cases.

The World Health Organisation has classified JN.1 as a separate “variant of interest” (VOI) given its rapidly increasing spread but said it poses “low” global public health risk.

The JN.1 sub-variant of the coronavirus was previously classified as a VOI as part of the BA.2.86 sub-lineages, the parent lineage that is classified as a VOI, the world body said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zydus Lifesciences gets USFDA nod to make and market Parkinsons treatment drug

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The United States Food and Drug Administration (USFDA) has given its final approvals to Zydus Lifesciences to manufacture and market the Pimavanserin Capsules, 34 mg and Pimavanserin capsules Tablets, 10 mg, respectively, the pharma company informed the stock exchanges on Wednesday, January 17.

The drug is used for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis, the company said.

Parkinson’s Disease (PD) is a progressive disorder which affects the nervous system, causing balance issues, slowed movements, rigidity, tremors, etc. As per the National Library of Medicine, US, PD psychosis is common among patients who are treated with dopaminergic drugs.

The Pimavanserin tablets and capsules will be manufactured at Zydus Life’s Ahmedabad SEZ manufacturing facility.

“Pimavanserin Capsules, 34 mg had annual sales of $149 million and Pimavanserin Tablets, 10 mg had annual sales of $10 million in the United States,” the company said.

As per the stock exchange filing, the group now has a total of 384 approvals and has filed for more than 448 Abbreviated New Drug Applications (ANDAs), till September 2023, since the commencement of the filing process in FY04.

Shares of Zydus Lifesciences ended 0.59% higher at ₹711 apiece on Wednesday, January 17.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sun Pharma to acquire remaining outstanding shares of Taro for ₹2,891 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Taro Pharma, the US-based unit of India’s largest drugmaker Sun Pharma Ltd., has announced a merger agreement with the latter, under which, Sun Pharma, Taro’s controlling shareholder, will acquire all remaining outstanding shares of its subsidiary.

Sun Pharma will acquire the remaining 21.52% outstanding shares of Taro for a cash consideration of $43 per share, amounting to $347.73 million or ₹2,891.76 crore, based on the USD-INR exchange rate of January 18.

The acquisition price is a 48% premium to Taro’s closing price on May 25, 2023, which was Taro’s last trading day before Sun Pharma submitted its first non-binding bid and a premium of 58% to the volume-weighted average price of Taro’s shares during the 60 days prior to and including May 25 last year.

Taro’s shares ended Wednesday’s trading session at $41.28, almost at par with the proposed acquisition price.

The merger is subject to various closing conditions, including shareholder approval of at least 75% of the voting power of the company’s shares, including a majority of those shareholders other than Sun Pharma and its affiliates. Sun Pharma has also indicated that it is not willing to sell its shares to a third party or support any alternative transaction to the merger.

Post the merger, which is expected to close in the first half of 2024, Sun Pharma will take Taro private and its shares would no longer trade on the New York Stock Exchange.

Sun Pharma had first submitted a non-binding bid to acquire the remaining outstanding shares of Taro for a cash consideration of $38 per share or nearly $300 million. It had earlier proposed a reverse triangular merger for this move, under which Sun Pharma would form a Special Purpose Vehicle (SPV), which will then merge with and into Taro.

In December last year, Sun Pharma had increased its bid to acquire the remaining outstanding shares to the current $43. Sun Pharma currently owns 78.48% of Taro.

Sun Pharma Group CFO CS Muralidharan had told CNBC-TV18 in November last year that the company has a net cash balance of $1.9 billion on a group level and a special committee was looking into Sun Pharma’s offer to de-list Taro. He had further said that the company will look at Merger & Acquisition (M&A) opportunities if and when an opportunity arises.

Taro Pharma’s shares rose 1% in extended trading on Wednesday in the US.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Doctors must mention reason while prescribing anti-biotics, says Health Ministry

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a major step towards curbing the over-prescription of antibiotics, the government has issued a warning, asking doctors to “mandatorily mention the indication/reason/justification while prescribing antibiotics.”

According to sources, Dr. Atul Goel, the Director General of Health Services, has appealed to all doctors in medical colleges to “mandatorily mention the exact indication/reason/justification while prescribing antimicrobials” in a letter.

The DG Health Services operates under the aegis of the Union Health Ministry.

Not only doctors, but Goel has also reminded pharmacists to “implement Schedule H and H1 of the Drugs and Cosmetics Rules and sell antibiotics only on valid prescriptions. It is important that doctors mention the exact indication on their prescriptions while prescribing antimicrobials,” according to a copy of the letter accessed by CNBC-TV18.

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“Misuse and overuse of antimicrobials are one of the main drivers in the emergence of drug-resistant pathogens. With few new antibiotics in the Research & Development pipeline, prudent antibiotic use is the only option to delay the development of resistance,” the letter said.

According to the government, Antimicrobial Resistance (AMR) is one of the top global public health threats.

“It is estimated that bacterial AMR was directly responsible for 1.27 million global deaths in 2019, and 4.95 million deaths were merely associated with drug-resistant infections,” the letter says.

The letter claims that “AMR puts many of the gains of modern medicine at risk. It threatens the effective prevention and treatment of infections caused by resistant microbes, resulting in prolonged illness and a greater risk of death. Treatment failures also lead to longer periods of infectivity, and the prohibitively high cost of second-line drugs may result in failure to treat these diseases in many individuals.”

Further noting the importance of medical colleges, Goel says that his letter is an appeal as “The medical colleges not only provide tertiary healthcare in the country but also are hubs for the education of the younger generation of doctors. This makes it important that the doctors at medical colleges set an example of judicious use of antimicrobials for the next generation of doctors who will face this crisis in a much more severe form.”

Also read: Aurobindo Pharma subsidiary receives CDSCO nod for breast cancer treatment drug

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Aurobindo Pharma subsidiary receives CDSCO nod for breast cancer treatment drug

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Aurobindo Pharma Ltd’s wholly-owned subsidiary, CuraTeQ Biologics Private Ltd, on Wednesday,January 17, received marketing authorisation from the Central Drugs Standard Control Organization (CDSCO) for biosimilar trastuzumab.

In a stock exchange filing, Aurobindo Pharma said that CureTeQ Biologics received a recommendation for grant of marketing authorisation of biosimilar trastuzumab from the Subject Experts Committee (SEC) of CDSCO, the apex drug regulator in India.

Trastuzumab biosimilar is a humanised monoclonal antibody that is used in the treatment of metastatic breast cancer and early breast cancer.

This monoclonal antibody is supplied in single dose glass vials that contain lyophilized powder in the dosages of 150 mg and 420 mg as concentrate for solution for infusion, Aurobindo Pharma informed the bourses.

CuraTeQ was asked to submit Phase IV clinical trial protocol to CDSCO within three months of receiving the marketing authorisation.

Earlier this month, Aurobindo Pharma’s manufacturing facility located in Sangareddy district of Telangana, was classified as ‘voluntary action indicated’ after inspection by the United States Food and Drug Administration (USFDA).

In another development, Aurobindo Pharma is reportedly exploring the options for the launch of initial public offering (IPO) of its wholly-owned subsidiary, speciality generic firm Eugia Pharma Specialities, to raise around ₹4,500 crore in 2024.

The Hyderabad-based company had previously attempted the sale of Eugia and held discussions with top private equity players in 2022, but the negotiations did not fructify into an eventual deal due to differences over valuations.

Shares of Aurobindo Pharma were trading 2.3% lower at ₹1,093.35 per piece on BSE at 12:50pm.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow