Health-care incumbents are making big moves right as would-be disrupters fade away.
The new year has begun with a bang for deal makers. UnitedHealth Group , the largest publicly traded health insurer, announced a deal on Wednesday to buy health technology startup Change Healthcare for $8 billion in cash.
Pharmacy giant Walgreens Boots Alliance also said Wednesday that it is selling its European distribution business to drug wholesaler AmerisourceBergen for $6.5 billion in cash and stock. Both Walgreens and AmerisourceBergen shares surged on Wednesday. And insurer Centene said on Monday it plans to acquire mental-health-care specialist Magellan for $2.2 billion.
It won’t be surprising if more deals materialize soon: The annual J.P. Morgan health conference, which historically has been a preferred moment for splashy announcements, is scheduled for next week.
The shopping spree coincides with the dissipation of potentially disruptive threats that have spooked Wall Street in the past. Haven Health, a venture aimed at reducing health costs backed by JPMorgan Chase , Berkshire Hathaway and Amazon.com , is folding roughly three years after its formation, The Wall Street Journal reported earlier this week. Haven’s arrival caused a selloff for insurance stocks back in 2018. Despite the fanfare and pedigree, the group found American health care too hard of a nut to crack.
