ROBERTSON STEPHENS on HLTH 5/26:
eHealth Update - Sheryl Skolnick - sheryl@rsco.com
HEALTHEON RECEIVES ANTITRUST OK TO PURCHASE ENVOY
This week, Healtheon/WedMD (HLTH $13-3/8) received its long-awaited antitrust approval to buy Envoy. Recall that Healtheon had received a second request from antitrust officials for more information regarding the deal, which we believe led to serious weakness in the stock. In our view, this is a huge positive for the company for the following reasons: Envoy is the largest processor of EDI transactions in the United States, processing 1.4 billion transactions per year through a network of 250,000 physicians, 35,000 pharmacies, 47,000 dentists, 4,500 hospitals and 900 payers; a shareholder vote can now take place on the deal, which the company expects to close in the near future; the closure of this deal is the key to the rest of Healtheon's strategy in the eHealth space and makes the closure of the Medical Manager (MMGR, $20-7/8) and CareInsite (CARI, $16) mergers more likely, since those companies lack viable alternatives, in our view. Looks like there may be life after death in the eHealth space. |
