Gold purchases of 350 tons in single quarter

Image via CrunchBase

Euro zone debt crisis to support gold in 2012, says WGC, Thomson Reuters: Reuters Insider
http://insider.thomsonreuters.com/link.html?cn=uid32884&cid=302678&shareToken=MzpjNjhlMDUyNi05YThhLTQwZDQtOTBmYi04MzMyMjY2ZDUzMjg%3D&start=27&end=427

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Merck gets into a safe zone (marketwatch.com)

Image by Getty Images via @daylife

marketwatch.com Shares of Merck(MRK 34.71, +0.85, +2.51%)   rose almost 3% to $34.68 in morning trading.

Merck said early Friday that it has reached a deal with Johnson & Johnson(JNJ 60.89, +0.87, +1.45%)   that will allow it to retain some of the marketing rights to the lucrative rheumatoid arthritis drug Remicade. The drug previously had been co-marketed by J&J and Schering-Plough, which Merck acquired in 2009.

J&J had asserted that the Schering-Plough takeover triggered a change-of-control clause in Remicade’s marketing agreement, thereby granting full commercial control to J&J.

Under the deal, Merck will pay J&J $500 million up-front, but retain marketing rights in Europe, Russia and Turkey.

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Roche results franked

Roche suffered even as Franc sales continue to get easier to print into dollars getting it $12 billion in sales while price cuts by DM governments, currency appreciation and losing franchises ( down 50% in Tamiflu and even for cancer drug Avastin) got a disappointing picture emerging. The company is expecting to end 2011 with a near double digit EPS performance and going by big pharma restructuring would be comparable to Pfizer in sales after it drawsdown on its restructuring plan and manages to lose the much talked $12 billion Lipitor to Generics

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• Roche Sales Fall By 9% (online.wsj.com)
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• Roche Second-Half Net Falls on Costs, Franc Strength (businessweek.com)

Amylin setback gets retail health deals

Amylin loses the plot

Image viaWikipediaByetta producer and Eli Lily partner suffered a drop in its byetta sales , lower by $150 mn for Q3 as its new version of the Byetta regimen, Bydureon was rejected by the FDA for possible Cardiac complications. For FDA it might even have been a simpler case of making a public monkey out of Amylin after Avandia and Glaxo Smithkline was destroyed because of inadequate disclosure on its Cardiac side effects and a recall spanning a loss of $198 mln in September 2010.

Even as diabetes medication comes under the scanner and Pfizer goes ahead with a new sign up with India's Biocon, pecuniary FDA action seems to have triggered an interesting deal mania intth e industry wih Eli Lily rumored to be in the running for using its $5.6 billion in cash to buy up Amylin which is 33% cheaper at $2.5 bln this week or other such niche producers with a pipeline of promising new molecules in its belt.

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Human Genome

We will be pursuing Biotechnology Sector for reviewing R&D and efficacy claims vis a vis Conventional Big Pharma if any. Human Genome today reported a mixed Phase II for its lupus drug Benlysta the NYSE Pharma index trades on DRG and Biotechnology on BTK Human Genome was unfortunately down 11% seemingly without a corresponding real loss in the physical world..

Recalling Insurance Claims

Big auto insurers will be examining past auto accident claims involving Toyota vehicles for possible subrogation action, an insurance arbitration executive predicted, as Allstate said it has a case review underway.

Mark Bunim, president and chief executive of Case Closure--a New York-based insurance arbitration and mediation firm--said large auto insurers are “going to amalgamate their serious claims involving Toyotas over the past five or six months, and see how many of them are tied to or could be tied to the gas pedal recall.”

“Then they are going to try and subrogate. And why not?” added Mr. Bunim.

At Allstate spokesman, Mike Siemienas, said cases are being examined, but it is too early to discuss whether the company will be involved in subrogation activity. “We will wait and see,” he noted.

“Allstate has processes in place because vehicle recalls occur regularly,” Mr. Siemienas added. “Allstate is in the early stages of reviewing claims involving Toyota’s recalled vehicles. The results of this investigation will help Allstate determine the appropriate next steps to take on behalf of our customers.”

In the past after such reviews, the company has instituted subrogation actions, according to Mr. Siemienas.

Since last November, at least 10 negligence lawsuits have been instituted seeking class-action status against Toyota in the United States and Canada, according to the Web site, www.attorneyatlaw.com.

Healthcare Payor Results: CIGNA

AETNA's up next with good MEdical Loss ratios and even better cost ratios outside medical loss on premium income.

CIGNA reported a $4 EPS for the year getting WC insurance to pay in the Run-OFF RE unit

We need to discover the Payment breakpoint ratios tracked y the industry , Hospital repayments could be 6 months behind, HMOs could be on different terms. chinese arms in play? P&C Plays/life related plays? Public option equivalentS?

CIGNA Reports Fourth Quarter and Full Year 2009 Results

• Shareholders’ net income¹ for full year 2009 was $1.3 billion, or $4.73 per share², compared to $292 million, or $1.05 per share², for full year 2008. The 2008 result included a loss of $646 million, or $2.32 per share², related to the Run-off Reinsurance operations.
• Adjusted income from operations³ for full year 2009 was $3.98 per share², a 17% increase over full year 2008, driven by improvement in the Run-off Reinsurance results.
• The company continues to estimate full year 2010 earnings per share², on an adjusted income from operations^3,4 basis, to be in the range of $3.75 to $4.15 per share². This outlook reflects the strength of our diversified portfolio of businesses against a challenging economic and competitive environment.
• The company continues to estimate full year 2010 adjusted income from operations^3,4 for the Health Care segment to be in the range of $720 million to $790 million.

PHILADELPHIA--(BUSINESS WIRE)--CIGNA Corporation (NYSE: CI) today reported shareholders’ net income¹ of $330 million, or $1.19 per share², for the fourth quarter of 2009 compared with a shareholders’ net loss¹ of $209 million, or $0.77 per share², for the same period last year. Shareholders’ net income¹ for the fourth quarter 2009 included income related to the GMIB^5,6 business of $60 million after-tax, or $0.22 per share², primarily related to favorable interest rate movements. Shareholders’ net income¹ for the fourth quarter 2008 included losses of $408 million after-tax, or $1.51 per share², related to the GMIB^5,6 and VADBe⁵ businesses.

“In 2009, each of our ongoing operations delivered solid earnings in a challenging economic and competitive environment. We continue to deliver strong service and clinical results while driving ongoing efficiency gains”

CIGNA's adjusted income from operations³ for the fourth quarter of 2009 was $285 million, or $1.03 per share², compared to adjusted income from operations³ of $132 million, or $0.48 per share², for the same period last year. Fourth quarter 2008 results included losses of $192 million after-tax, or $0.71 per share², from the VADBe⁵ business. As a result of continued stability in the equity markets, no reserve strengthening was required for the VADBe⁵ business in the fourth quarter of 2009.

For full year 2009, adjusted income from operations³ was $1.1 billion, or $3.98 per share², compared to adjusted income from operations³of $946 million, or $3.39 per share² in 2008. Consolidated revenues were $4.6 billion and $18.4 billion for the fourth quarter and full year of 2009, respectively, and $4.8 billion and $19.1 billion for the comparable periods of 2008.

• Health care medical claims payable⁹ were approximately $715 million at December 31, 2009 and $713 million at December 31, 2008.
• Cash and short term investments at the parent company were approximately $475 million at December 31, 2009 and $90 million at December 31, 2008.

HIGHLIGHTS OF SEGMENT RESULTS

• “Adjusted segment earnings (loss)” are adjusted income (loss) from operations³, as applicable, for each segment (see Exhibit 2).

Health Care

• This segment includes medical and specialty health care products and services provided on guaranteed cost, retrospectively experience-rated and service-only funding bases. Specialty health care includes behavioral, dental, disease and medical management, stop-loss, and pharmacy-related products and services.

Financial Results (dollars in millions, medical membership in thousands):

		Fourth Qtr.			Fourth Qtr.			Third Qtr.					Year ended
		2009			2008			2009					Dec. 31, 2009
Adjusted Segment Earnings, After-Tax		$	194		$	209		$	204				$	729
Premiums and Fees		$	2,806		$	2,905		$	2,812				$	11,384
Segment Margin, After-Tax10			6.0%			6.3%			6.3%					5.6%
Aggregate Medical Membership			11,040			11,679			11,104

• Fourth quarter 2009 adjusted segment earnings reflect effective operating expense management, as well as sustained contributions from our specialty businesses. The fourth quarter 2008 earnings included a net favorable expense adjustment of $35 million after-tax, reflecting a significant reduction in management incentive compensation.

• Premiums and fees in the fourth quarter 2009 decreased approximately 3% relative to fourth quarter 2008, primarily due to a decline in medical membership, partially offset by rate increases.

Disability and Life

• This segment includes CIGNA’s group disability, life, and accident insurance operations that are managed separately from the health care business.

Financial Results (dollars in millions):

		Fourth Qtr.			Fourth Qtr.			Third Qtr.					Year ended
		2009			2008			2009					Dec. 31, 2009
Adjusted Segment Earnings, After-Tax		$	66		$	64		$	65				$	279
Premiums and Fees		$	647		$	666		$	654				$	2,634
Segment Margin, After-Tax10			9.0%			8.5%			8.7%					9.3%

• Fourth quarter 2009 adjusted segment earnings reflect strong accident results. In addition, results continue to reflect competitively strong margins driven by the sustained value we deliver to our customers from our disability management programs.

International

• This segment includes CIGNA’s life, accident and supplemental health insurance and expatriate benefits businesses operating in select international markets.

Financial Results (dollars in millions):

		Fourth Qtr.			Fourth Qtr.			Third Qtr.					Year ended
		2009			2008			2009					Dec. 31, 2009
Adjusted Segment Earnings, After-Tax		$	38		$	44		$	40				$	182
Premiums and Fees		$	504		$	448		$	482				$	1,882
Segment Margin, After-Tax10			7.2%			9.3%			8.0%					9.2%

• Adjusted segment earnings in the quarter reflect unfavorable claims experience in the expatriate benefits business, due in part to the impact of global economic pressures. Fourth quarter 2009 results also included an unfavorable adjustment of $4 million after-tax related to a change in tax legislation in South Korea. Our International business continues to deliver competitively strong margins.

Other Segments

• Adjusted segment earnings (losses) for CIGNA's remaining operations are presented below (after-tax, dollars in millions):

		Fourth Qtr.			Fourth Qtr.			Third Qtr.					Year ended
		2009			2008			2009					Dec. 31, 2009
Run-off Reinsurance		$	9		$	(179)		$	14				$	(24)
Other Operations		$	23		$	23		$	23				$	85
Corporate		$	(45)		$	(29)		$	(35)				$	(154)

• Run-off Reinsurance results for the fourth quarter 2009 reflect favorable commutations in the workers compensation business. As a result of continued stability in the equity markets, no reserve strengthening was required for the VADBe⁵ business this quarter.

OUTLOOK

• CIGNA continues to estimate full year 2010 consolidated adjusted income from operations^3,4 to be in the range of $1.05 billion to $1.15 billion, or $3.75 to $4.15 per share². This outlook includes an assumption that VADBe⁵ results will be approximately break-even for full-year 2010, reflective of management’s view that the long-term reserve assumptions are appropriate and that capital markets remain stable during the year.
• CIGNA continues to estimate full year 2010 adjusted income from operations^3,4 for the Health Care segment to be in the range of $720 million to $790 million.
• CIGNA continues to estimate full year 2010 adjusted income from operations^3,4 for the Group Disability and Life and International segments to be in the range of $465 million to $495 million.
• CIGNA’s earnings and earnings per share² outlooks exclude the impact of any future stock repurchase¹¹.
• Full year 2010 medical membership outlook has been updated to reflect the growth in our Individual Private Fee for Services business of approximately 80,000 to 90,000 members. Our current full-year outlook is now a range of -1% to +2%.
• Management will provide additional information about the 2010 earnings outlook on CIGNA's fourth quarter 2009 earnings call.