In a concerted effort to provide better healthcare services to
diabetic patients,
Humana Inc.
(
HUM
) partnered with
Novo Nordisk Inc.
(
NVO
) to conduct research and explore quality treatment opportunities
for diabetes. The companies formed a strategic alliance to conduct
intensive research in this field for a year.
The alliance will further boost Humana's expertise in developing
innovative programs that can change the life of diabetics for
better. This collaboration gives both the companies the opportunity
to arm themselves with their most efficient researchers and observe
treatment procedures and subsequently improvise on them.
Also, they will study the rate of occurrence of diabetes amongst
the senior population. Humana will use its affiliations with
Competitive Health Analytics, Inc. to derive quality results from
the research.
Humana is slated to benefit from its current investments as the
number of people falling prey to diabetes is alarmingly high.
Centers for Disease Control and Prevention reported that
approximately 26 million people in America suffer from diabetes and
this number is steadily increasing.
On the flip side, such research programs involve high expenses,
which might weigh on margins.
Humana has been expanding its business platform over the last
several years both organically as well as inorganically. It
acquired Arcadian, SeniorBridge, Concentra and MD Care, besides
expanding its Medicare coverage. Humana also enhanced the quality
of its healthcare services, expanded its provider network in
various regions and reduced its exposure to health care overhaul
regulations.
Aetna
Inc
. (
AET
), a close competitor of Humana, is also equally proactive when it
comes to expanding its services inorganically. Last month, Aetna
extended its relationship with Banner Health Network for
Accountable Care Collaboration to offer health management and other
patient oriented services to over 200,000 patients.
Per the agreement, both the companies are scheduled to provide
support to 50,000 patients of Medicare fee-for-service who come
under the purview of the Pioneer ACO shared savings program. The
members who are a part of Aetna's ACO relationship with Banner
Health Network are also eligible for similar benefits.
Both Humana and Novo Nordisk currently retain a Zacks #3 Rank,
which translates into a short-term Hold rating. We also retain our
long-term Neutral recommendation on the shares of Humana.
AETNA INC-NEW (AET): Free Stock Analysis Report
HUMANA INC NEW (HUM): Free Stock Analysis
Report
NOVO-NORDISK AS (NVO): Free Stock Analysis
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