UnitedHealth Group Inc., which bought Cypress-based PacifiCare Health Systems Inc. two years ago, is coming through on its strong profit expectations for 2007.
UnitedHealth,the country’s largest health insurer by market share,reaffirmed its profit forecast of $4.5 billion during an investor conference last week. Sales are expected to come in at $76 billion.
The Minnesota-based company also said it expected profits of $5.1 billion to $5.2 billion and revenue of $83 billion in 2008, even higher than what analysts are predicting for next year.
UnitedHealth has been through its share of turmoil during the past 18 months, primarily at the corporate level. That began with the departure of William McGuire, its veteran chief executive, following a stock options scandal.
UnitedHealth also restructured its top management by shuffling executives to different positions.
On the local level, UnitedHealth’s issues weren’t a distraction, said David Hansen, United- Health’s regional chief executive who came from PacifiCare.
“Our overall strategic direction and performance goals remain the same, and we continue to grow our business in California as well as the rest of the country,” Hansen said.
Analysts said Wall Street doesn’t see the investor conference or the higher-than-expected earnings forecast lighting any fires for growing the company.
Justin Lake of UBS said he saw the event as “more of a building block toward improved sentiment and operating performance rather than a major catalyst in and of itself.”
Beckman Buys Rest of NexGen
Beckman Coulter Inc. of Fullerton has bought the remaining 80% of NexGen Diagnostics LLC, a Southfield, Mich.-based company, for $36 million.
Beckman makes medical testing gear and supplies.
NexGen is a spinoff of Lumigen Inc., which Beckman bought for $185 million in 2006. Lumigen spun off NexGen before Beckman bought it.
The deal is set to close in the fourth quarter. Beckman said in a statement that it expects to take a $36 million charge in the fourth quarter for costs relating to NexGen’s research and development.
Lumigen already was a Beckman vendor when it was bought in 2006. It supplied chemicals used on Beckman machines.
Collier’s Healthcare Group
The Irvine office of Colliers International, a real estate brokerage, officially launched Colliers Healthcare Services late last month. Colliers Healthcare Services is a group of brokers who will solely focus on providing real estate services to both the healthcare industry and medical office developments.
Colliers Healthcare will handle property owner representation, marketing and leasing, tenant representation, investment services, development services, consulting, market analysis, property valuation, property management and construction management.
A continued demand for medical office space was one of the reasons for forming Colliers Healthcare, said John Wadsworth, the group’s vice president, in a release. Wadsworth has worked in the medical office sector of real estate since 2001 and has built a team of professionals who serve developers, owners, local physicians, regional hospitals and national healthcare systems.
Edwards: Study Validates Device
Irvine-based heart valve maker Edwards Lifesciences Corp. said a clinical study found positive results for its newly launched pediatric monitoring tube.
Edwards said the study, published by medical journal Anesthesia and Analgesia, validated its PediaSat Oximetry catheter’s superiority over other methods used to monitor babies, children and teenagers up to 16 years old who undergo heart surgery. The study was conducted on five sedated pigs, as well as 16 pediatric patients who underwent heart surgery.
PediaSat is a tube inserted into a large vein that uses fiber optics to monitor and identify potentially life-threatening changes in oxygen levels in children’s blood. Edwards has said the technology used in PediaSat was previously only available in devices for adults.
PediaSat could be used for children who have congenital heart disease, complex heart conditions, infections in the blood stream, trauma and brain injuries, lung disease and transplants.
Hoag Gets $1M Donation
Walter and Mary Frome, residents of Newport Beach, gave $1 million to Hoag Memorial Hospital Presbyterian in Newport Beach. The Fromes’ donation will be used to expand and renovate the hospital’s emergency department.
In a release, the couple said they gave money to challenge others to support Hoag’s efforts to expand its emergency services. Hoag has a four-year plan to rebuild and renovate its emergency department, adding more than 6,000 square feet to the existing ER.
