The competition appears to be heating up to acquire Brazil-based health and well-being company Amil.
On Thursday, it was reported by Brazilian newspaperO Estado de S.Paulo that the South American country’s hospital chain, Rede D'or (BSP:RDOR3, Financial), as well as the influential Bueno family are competing for the purchase of the health care plan operator, which is controlled by UnitedHealth Group Inc. (UNH, Financial).
Reuters reported the local periodical indicated the country’s major health care groups “have already been sounded about a potential interest in Amil, but, so far, Rede D'Or and the Bueno family, which also controls health care company Diagnosticos da America SA (BSP:DASA3, Financial), are the frontrunners.” The health care company was founded by the Bueno family in the 1970s and sold to UnitedHealth Group in 2010 for 10 billion reals ($1.81 billion), but has reported losses in its individual plans portfolio in recent years.
UnitedHealth Group offers health care coverage and benefits through UnitedHealthcare, and technology and data-enabled care delivery through Optum. On Wednesday, Optum announced the launch of its new evidence engine to advance genomics-based disease detection and treatment. Genomics is one area showing promise in early detection and potential treatment, with new tests continually in development.
The Optum Evidence Engine is “designed to help test developers ensure their tests will be safe and effective for the intended use,” the company explained in a release. It accelerates the generation of clinical validity and utility evidence for molecular diagnostics, helping standardize evidence requirements and speed the adoption of precision medicine in health care. “Currently, emerging health care technologies such as those used in precision medicine may struggle to sufficiently demonstrate the validity of the test or the clinical utility of the intervention," the company said. "Greater clarity in this area will make it easier for payers and providers to ensure patients receive the highest-quality, most effective care.”
UnitedHealth Group is “a blue-chip stock you can't afford not to own,” according to columnist Kody's Dividends. The company’s sub-30% adjusted diluted earnings per share payout ratio “will carry over from 2021 into this year, which should translate into robust future dividend growth. The health insurer's year-to-date revenue is up 11.6% while adjusted diluted EPS edged 1.3% higher during that time.”
In addition, he continued, its net debt-to-Ebitda ratio “demonstrates that the company's balance sheet is very conservative."
Based on the GF Value Line, the stock appears to be modestly overvalued following its 33% rally over the past year.
According to Zacks Equity Research, UnitedHealth Group “will be looking to display strength as it nears its next earnings release" on Jan. 19. The company is expected to release per-share earnings of $4.30, an impressive 70.63% growth rate compared with the prior year. The consensus estimate for revenue is $73.1 billion, an 11.66% increase from the year-ago period.
