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MEDICAL
Reimbursement fears hit Dianon
Dianon skidded 11% and fellow pathology lab firm AmeriPath fell 6% after Charles Schwab said Medicare pathology payments may fall as much as 11% next year under a proposed regulation announced Friday. About 40% of Dianon's revenue comes from Medicare and Medicaid. AmeriPath gets 21%.
Dianon said '03 profit could be hurt by 10% if the proposed changes go into effect.
Elan hurt by Zanaflex copycat
The FDA OK'd Eon Labs' generic form of Elan's Zanaflex, which treats muscle spasms. Elan said Zanaflex's cheaper twin will hurt sales in the 2nd half. The Irish firm still plans to move ahead with new formulations and dosage forms of Zanaflex. Elan, which has faced a barrage of bad news this year, fell 1.13, or 17%, to 5.47, its lowest close in a decade.
Medtronic to make $270 mil buy