Health Sector Developments: Trump’s Bill, Major Mergers, and FDA Approvals
The latest health news covers President Trump's spending bill potentially impacting Medicaid coverage, a significant merger between Waters Corp and Becton, Dickinson, GSK's FDA application for RSV vaccine use expansion, Kenvue CEO resignation amid strategic review, WHO's HIV prevention recommendation, and AstraZeneca's blood pressure drug trial success.
In recent health developments, President Donald Trump's spending bill is predicted to elevate administrative costs and complicate cost management for insurers involved in Medicaid such as UnitedHealthcare and CVS Health's Aetna. Experts suggest these companies may reduce their Medicaid coverage and bolster investments in existing markets to retain healthier members.
In business news, Waters Corp is set to merge with Becton, Dickinson and Company's Biosciences & Diagnostic Solutions unit in a $17.5 billion deal, forming a larger entity concentrated on high-volume medical testing. This strategic move employs a Reverse Morris Trust to facilitate the merger while minimizing tax burdens.
In pharmaceutical updates, GSK has submitted an application to the FDA to expand its RSV vaccine use to adults under 50 who face higher disease risk. Elsewhere, changes at Kenvue include the resignation of CEO Thibaut Mongon amid a board strategic review, with Kirk Perry appointed interim CEO.
(With inputs from agencies.)
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