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INGAP Begins Clinical Trial
According to the Strelitz Diabetes Institute at the Eastern Virginia Medical
School in Norfok, VA, a substance that encourages the growth of insulin-producing
cells in the pancreas and has arrested diabetes mellitus in animal model
is now undergoing human testing in clinical trials at three sites in the
United States.
This is the first clinical trial involving the INGAP
(islet neogenesis gene associated protein) Peptide. It derives from discoveries
made by Aaron I. Vinik, M.D., Ph.D., professor of medicine, pathology &
neurobiology, and director of research at the Strelitz Diabetes Institutes
at Eastern Virginia Medical School in Norfolk, Virginia, and Lawrence Rosenberg,
M.D., Ph.D., professor of surgery and medicine, and director of the Division
of Surgical Research at McGill University and the McGill University Health
Center in Montreal, Canada.
Vinik and Rosenberg found that administration of the
INGAP Peptide to certain species of diabetic animals increased insulin levels
and lowered blood glucose levels.
INGAP Peptide represents a potential anti-diabetic therapy
directed at the basis of the disease," Vinik said. "It stimulates the growth
of insulin-producing cells in neoislets in the pancreas, rather than treating
the metabolic consequences of diabetes such as high blood sugar."
The researchers identified INGAP as a naturally occurring
protein product that is associated with the generation of islets of Langerhans
during normal development of the pancreas. Islets of Langerhans are areas
within the pancreas that produce hormones, including insulin and glucagon,
which are largely responsible for keeping the blood glucose concentration
within the normal range. Diabetes is a common disease that affects more than
16 million people in the United States and 130 million people worldwide.
The trial is being conducted by three leading diabetes
specialists at three study sites in the United States: Ralph A. DeFronzo,
M.D., Texas Diabetes Institute/The University of Texas in San Antonio; John
B. Buse, M.D., Ph.D., Diabetes Care Center / The University of North Carolina
at Chapel Hill; and Robert E. Ratner, M.D., MedStar Research Institute in
Washington, D.C.
The start of clinical trials comes after decades of
research. Many years ago, Vinik's research was considered too "avant garde"
to attract research support, said Leon Paul Georges, M.D., professor and
chairman of internal medicine and director of the Strelitz Diabete Institutes
at EVMS.
Georges recruited Vinik to Norfolk from the University
of Michigan. Georges was impressed by the logical progression of Vinik's
research, though he knew it would take many years to reach fruition.
"We believe that INGAP Peptide has the potential to
be an important approach in the treatment of patients with diabetes mellitus,"
said Bart Chernow, M.D., president and CEO of GMP Companies, Inc. This company
is a large, privately held healthcare company that has funded the research
in the past few years. "As an endocrinologist who has seen many patients
suffer from diabetes, I am hopeful that the treatment proves to be safe and
efficacious so that we can help patients."
According to Michael Salem, M.D., executive vice president
of research & development for GMP Companies, Inc., "the start of these
initial clinical trials is an important first step in evaluating a potentially
exciting treatment for the many patients worldwide suffering with diabetes.
Since INGAP Peptide may stimulate new islet formation with the corresponding
production of insulin, many diabetic patients may possibly benefit from this
treatment approach." Back to TOC.
AMERIGROUP to Discuss Fourth Quarter Earnings on
February 12
AMERIGROUP Corporation has announced that it will report its earnings for
the fourth quarter and year ended December 31, 2001, after the market closes
on Monday, February 11, 2002. At 9:00 am EST on Tuesday, February 12, 2002,
AMERIGROUP's management will host a conference call and webcast to discuss
earnings and other information. The company, headquartered in Virginia Beach,
Virginia, is a multi-state managed health care company focusing on
state-sponsored programs including Medicaid, Children's Health Insurance
Program, or CHIP, and Family Care. The Company operates in Illinois, Maryland,
New Jersey, Texas and the District of Columbia. Back to
TOC.
Universal Health Services, Inc. Completes Two Acute
Care Hospital Acquisitions
UHS has announced that it completed the acquisition of two acute care hospitals
effective January 1, 2002. North Penn Hospital is a 150-licensed bed community
hospital in Hatfield Township in rapidly growing Montgomery County north
of Philadelphia. Lancaster Community Hospital in Lancaster, California, is
a 117-licensed bed hospital. Lancaster, northeast of Los Angeles, is also
a rapidly growing community. Combined net revenues of the two acquired hospitals
is approximately $90 million.
Universal Health Services, Inc. is one of the nation's
largest hospital companies, operating in 22 states, Washington, D.C., Puerto
Rico and France. It acts as the advisor to Universal Health Realty Income
Trust, a real estate investment trust. Back to TOC.
US Oncology to Make Private Placement of $175 Million
Senior Subordinated Notes
US Oncology, Inc. has proposed to make a private placement of approximately
$175 million in senior subordinated notes to repay currently outstanding
senior debt and for other general business purposes. The company anticipates
closing the offering later this month or early February.
Separately, the company announced the installation of
two mobile Positron Emission Tomography (PET) units to serve the East Texas
and Rio Grande Valley regions of Texas. These installations bring the total
number of US Oncology installed PET units to 12. The two mobile PET imaging
units will be a part of Texas Oncology, P.A., a US Oncology affiliated practice
with clinical locations throughout Texas and southern New Mexico. The East
Texas unit will serve patients in Longview, Paris, and Tyler, Texas. The
Rio Grande Valley unit will serve patients in Brownsville, Harlingen, and
McAllen, Texas. Back to TOC.
Health Management Associates, Inc. Named to Forbes The
Best Big Companies in America
HMA announced it has been named to the Forbes Platinum 400 - The Best Big
Companies in America. This prestigious ranking begins with a universe of
more than a thousand publicly traded companies with at least $1 billion of
revenue, respectively. Profitability and growth are then compared among peers
in 23 industries by examining return on capital and sales and earnings per
share growth. A ranking is then computed based on the most recent year's
results and also the past five years' results, and this ranking is used to
assist in choosing the top 400 finalists.
"We are extremely pleased to be recognized by Forbes
for HMA's outstanding history of generating quality earnings, not only for
our most recent fiscal year, but also over a long period of time," said Joseph
V. Vumbacco, President and Chief Executive Officer. "Our focus of delivering
high-quality healthcare to non-urban and rural communities continues to remain
strong. We remain committed to achieving the objectives we have announced
for both the quality of our healthcare delivery and the quality and growth
of our financial results."
HMA is a large non-urban hospital operator of general acute care hospitals
in communities situated primarily in the southeast and southwest. The Company
operates 42 facilities in 14 states with 5,796 licensed beds. HMA has experienced
13 years of uninterrupted operating earnings growth. Back
to TOC.
HealthSouth Comfortable with 2002 EPS Outlook
HRC, the largest U.S. provider of diagnostic imaging, rehabilitation care
and outpatient surgery, reiterated that it remains comfortable with analysts'
earnings estimates of $1.14 per share in 2002.
The Birmingham, Alabama-based company, which issued
earnings guidance last month, said that it has been preparing for Medicare's
switch to a "prospective payment system" (PPS) for in-patient rehabilitation
care for several years. Analysts are expecting HEALTHSOUTH to benefit from
increased Medicare reimbursements from this new system. Back
to TOC.
Community Health Systems Acquires Granite City, Illinois
Hospital
Community Health Systems, Inc.announced the acquisition of 386-bed Saint
Elizabeth Medical Center, the only hospital in Granite City, Illinois. Granite
City is located across the Mississippi River from St. Louis, Missouri. The
facility has been renamed `Gateway Regional Medical Center,' reflecting the
discontinuation of its religious affiliation. The facility was the only hospital
operated by the Sisters of Divine Providence, a Catholic order. The hospital
provides a full range of inpatient and outpatient services, as well as physician
clinics and other outpatient services in the rural markets it serves, including
Edwardsville and Collinsville, Illinois.
"We are very pleased to start out the new year with
the announcement of this transaction," said Wayne T. Smith, Chairman, President
and Chief Executive Officer of Community Health Systems, Inc. "We acquired
five facilities in 2001 and this transaction demonstrates the continued execution
of our key strategy of growing through acquisitions. Granite City exhibits
the market characteristics where market share growth can be realized through
the enhancement and addition of services. We look forward to making more
health care services available to the residents of this community and to
working with the high-caliber medical staff, dedicated employees and local
leadership."
Located in the Nashville, Tennessee suburb, Brentwood,
Community Health Systems is an owner/ operator of general acute care hospitals
in non-urban communities throughout the country. Through its subsidiaries,
the company currently owns, leases or operates 58 hospitals in 20 states,
including facilities in Marion, Mt. Vernon, and Red Bud, Illinois. Its hospitals
offer a broad range of inpatient medical and surgical services, outpatient
treatment and skilled nursing care. Shares in Community Health Systems, Inc.
are traded on the New York Stock Exchange under the symbol "CYH."
Back to TOC.
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In This Issue--Also See
Archive
-
INGAP Begins Clinical Trial
-
According to the Strelitz Diabetes Institute at the Eastern Virginia Medical
School in Norfok, VA, a substance that encourages the gro...
-
AMERIGROUP Charts Q4 Earnings
-
AMERIGROUP Corporation has announced that it will report its earnings for
the fourth quarter and ye...
-
2 New Hospitals for Universal Health
-
UHS has announced that it completed the acquisition of two acute care hospitals
effective January 1, 2002. ...
-
US Oncology Subordinated Notes
-
US Oncology, Inc. has proposed to make a private placement of approximately
$175 million in senior subordinate...
-
HMA Makes Forbes Best List
-
HMA announced it has been named to the Forbes Platinum 400 - The Best Big
Companies in America. ...
-
HealthSouth Sees Rosy Picture for EPS
-
HRC, the largest U.S. provider of diagnostic imaging, rehabilitation care
and outpatient surgery, reitera...
-
Humana Expands Services
-
HUM, one of the nation's largest publicly traded health benefits companies,
has significantly expanded the scope of the curr...
-
CCS & Americ Merger News
-
Children's Comprehensive Services, Inc. announced that it has completed its
previously announced merger with Ameris Acquis...
-
CHS Acquires St. Elizabeth Hospital
-
Community Health Systems, Inc.announced the acquisition of 386-bed Saint
Elizabeth Medical Center, the only hospital in Granite City...
-
E-health Bullish Despite Mounting Losses
-
Last month alone more than a dozen e-health stocks hit 52-week lows, according
to Irving Levin Associa...
-
Humana Expands Contract for Disease Management Services
To 18 Humana Markets
HUM, one of the nation's largest publicly traded health benefits companies,
has significantly expanded the scope of the current contract with Accordant
Health Services to include its complete range of disease management (DM)
services in 18 markets where Humana has health plan members.
Humana was an early adopter of Accordant programs for
population-based DM interventions for a constellation of complex, chronic
diseases. Accordant will provide DM services for 13 rare diseases including
among them cystic fibrosis, multiple sclerosis, Parkinson's disease, ALS
(Lou Gehrig's disease) and rheumatoid arthritis.
Humana began working with Accordant three years ago
to fill a need in providing DM services to its members with rare diseases.
"Accordant brought capabilities and expertise that we did not have in-house
to help coordinate the health services and resources for members with fragile
health. Through this coordination, Accordant has shown that its services
have made a favorable difference in the lives of Humana members," said Jonathan
T. Lord,M.D., Humana's chief clinical strategy and innovations officer.
Specifically, Dr. Lord pointed to the Accordant multiple sclerosis program,
which has helped to reduce the percentage of complications that are associated
with MS for enrolled Humana members. "Essentially, a program that helps to
reduce complications of disease, hospital stays and visits to the emergency
room brings value to both patients and their employers," said Dr. Lord. The
contract expansion is a strategic step for Humana to provide high-touch services
to eligible members with complex clinical needs. Back to
TOC.
Children's Comprehensive Services and Ameris Acquisition,
Inc. Complete Merger
Children's Comprehensive Services, Inc. announced that it has completed its
previously announced merger with Ameris Acquisition, Inc. ("Ameris"). As
a result, each outstanding share of CCS common stock has been converted into
the right to receive $6.00 in cash, without interest. The Company's exchange
agent will mail to each CCS shareholder a letter of transmittal and instructions
for surrendering CCS stock certificates in exchange for cash. CCS shareholders
should not submit stockcertificates for exchange until receipt of the letter
of transmittal and the instructions referred to above.
Children's Comprehensive Services provides education,
treatment and juvenile justice services for at-risk and troubled youth either
directly or through management contracts. It currently offers these services
through the operation and management of nonresidential specialized education
programs and day treatment programs and both open and secured residential
treatment centers to approximately 3,200 youth in 14 states.
Back to TOC.
E-health Continues to Post More Losses, Some Staggering,
But Companies Bullish
Last month alone more than a dozen e-health stocks hit 52-week lows, according
to Irving Levin Associates, a New Canaan, Conn.-based healthcare research
firm. The following results were reported nationally in the current issue
of Modern Healthcare.
Among the hardest hit:
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Three-year-old drkoop.com, based in Austin, Texas, reported a net loss of
$57.9 million, or $1.60 per share, for the third quarter ended Sept. 30.
That's 180% greater than its $20.6 million loss, or 68 cents per share, in
the year-ago quarter. Revenue fell 31% to $2 million.
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HealthStream, a provider of Internet-based medical education, reported a
net loss of $5.3 million, or 27 cents per share, on revenue of $2.7 million
for the third quarter. The Nashville-based company is headed by Robert Frist
Jr., nephew of HCA-The Healthcare Co.'s Thomas Frist Jr.
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Northbrook, Ill.-based InLight Technologies, founded by former Baxter
International Chairman Vernon Loucks Jr., couldn't raise needed capital and
closed its doors in September. The company marketed Internet services to
patients. It was led by Loucks' son David.
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iMcKesson, the startup Internet unit of drug distributor McKesson HBOC, lost
$10.1 million on operations in its second quarter ended Sept. 30. The unit
posted revenue of $69.4 million.
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Medscape, based in Hillsboro, Ore., lost $111 million, or $2.02 per share,
a whopping 7.5 times its revenue of $14.8 million for the third quarter ended
Sept. 30.
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Neoforma.com, an online supply marketplace based in San Jose, Calif., recorded
a net loss of $47.5 million, or 46 cents per share, on net revenue of $2.3
million for the third quarter.
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Internet giant WebMD, which provides online content and transaction support,
accelerated its financial decline in 2000 with a loss of $786.9 million,
or $3.17 per share, in its third quarter.The Atlanta-based company reported
revenue of $151.2 million for the quarter. In the first nine months of 2000,
WebMD lost $1.7 billion, or $8.41 per share, on revenue of $318.2 million.
And regardless of their dismal financial numbers, WebMD and other vendors
remain bullish about efforts to digitize an industry that has been slow to
join the information highway.
Industry analysts are not as optimistic. Many e-health contenders "are more
like projects or products masquerading as companies," said Bruce Hochstadt,
M.D., a principal with investment banking firm Thomas Weisel Partners in
San Francisco. At hospitals, they have a tough sell. Many hospital CEOs "don't
have the stomach, or for that matter the budget, to go through major
(information) system changes unless they have to," Hochstadt said. In many
cases, existing systems "are not pretty or fast, but they get the job done,"
he said.
Still, some provider organizations have gone forward
with e-health partnerships. One is the 140-physician Austin (Texas) Diagnostic
Clinic, which last summer turned to Medscape for online transcription services
as well an electronic medical record.
"There has already been a lot of attrition in the (e-health)
industry. Medscape was one of the companies that had survived, and we felt
(it) would be one of the last standing in terms of providing electronic medical
records," said Kenneth Mitchell, M.D., the clinic's board chairman and medical
director for managed care. Back to TOC.
Diffenbaugh & Associates, Inc. is a consulting firm
specializing in the recruitment and placement of physicians throughout the
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organizations throughout the United States. We serve the needs of academic
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