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Centene (CNC) Acquires Apixio, Boosts Data Analytics Portfolio

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Centene Corporation (CNC - Free Report) recently inked a definitive deal to acquire Apixio. Subject to regulatory approval, the deal is anticipated to close by the end of this year. Shares of Centene gained 3.3% in the last day’s trading session as on Nov 10.

The deal is likely to be a win-win for both the companies. On one hand, Apixio seems to be a suitable fit for Centene’s endeavor of positioning itself as a technology company that focuses on healthcare. The reason can be primarily attributed to Apixio’s Articificial Intelligence (AI) platform, which is equipped to not only process enormous volumes of digital data but also produce valuable insights aimed at simplifying the otherwise burdensome administrative activities of the healthcare industry.

With access to the enhanced AI technology solutions of Apixio, Centene can progress efficiently toward its aim of digitizing the administrative activities. The latest move also makes Centene capable of processing comprehensive patient data which in turn, will continue to help it in providing high quality care to members.

On the other hand, the association with Centene’s large scale of business is likely to benefit Apixio, which will continue to operate as an independent entity under Centene's Health Care Enterprises group.

Shares of this Zacks Rank #4 (Sell) health care provider have gained 28.8% in a year compared with the industry’s rally of 23.9%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Moreover, the addition of Apixio is likely to enhance Centene’s portfolio of data analytics products, which already has Interpreta in it. Notably, the analytics engine of Interpreta processes clinical and genomics data and outlines a personalized roadmap for assuring timely care.

Furthermore, Centene has been undertaking mergers and acquisitions, which are intended to expand the company’s markets and bolster its Medicaid membership. These initiatives have been bolstering the company’s revenues for quite some time and the trend continued in the third quarter as well. The Wellcare buyout and expansion of new programs across several states has in fact, accounted for year-over-year improvement of 53% in the company’s third-quarter top line.

Apart from buyouts, the company has also undertaken several mergers. The tie-up with Samsung and National Association of Community Health Centers (NACHC) this year were primarily intended to expand the reach of its telehealth solutions across several markets, which are in dire need of telehealth services amid the COVID-19 crisis.

Among other stocks in the medical space, Teladoc Health Inc. (TDOC - Free Report) is a niche player in the telehealth service industry with wide offerings and international reach. Other companies, namely Magellan Health, Inc. (MGLN - Free Report) and Humana Inc. (HUM - Free Report) have also developed telehealth services.

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