Author: Davis Well
Earlier yesterday, Cano Health stock plummeted after it was reported that CVS was abandoning its purchase of the company.
The news came as a surprise to many because the two companies had been moving closer to a deal.
CVS’ announcement has left many people wondering what this means for the future of Cano Health.
According to Barron, CVS declined to comment on the rumors that the transaction is being canceled.
Cano Health Stock Plummets on Report CVS Is Abandoning Purchase
From multiple sources, Cano Health’s stock plummeted when it was revealed that CVS was no longer interested in purchasing the company.
The decision of CVS (ticker: CVS) to forego a partnership with Cano Health was first reported by a Deal reporter (CANO).
According to the report, several people are in the know. It’s over 10 days since Bloomberg said that CVS was in exclusive talks to buy the business.
Barron asked CVS for a response, but CVS refused, saying that it doesn’t comment on speculations or rumors. Efforts to make Cano commented on the issue proved abortive.
When the news hit yesterday that CVS was backing away from its purchase of Cano Health, the company’s stock plummeted.
According to Dow Jones Market Data, Cano stock fell 35% on Monday, the biggest percentage drop in the stock’s history.
Since August 19, the stock’s closing price hasn’t been lower than the current stock value of $5.35. The stock has now dropped 40% this year, making it the worst year ever for the business.
Why This Matters
Many businesses are entering the primary care and senior care markets. In July, Amazon reached an agreement to pay roughly $3.9 billion for a primary care venture.
It was announced earlier this month that CVS Health Corporation had won the bidding war to acquire Signifying Health for $8 billion.
The Implications of This News for the Healthcare Industry
So what does this mean for the healthcare industry?
It’s still too early to say for sure, but it seems like this could be a sign of things to come.
In a time when big players like Amazon are getting more involved in the healthcare sector, smaller companies could be in trouble.
Cano Health is a prime example of this. The company is facing major financial trouble now that it looks like CVS is no longer interested in buying it.
This is a setback for the company, and it’s unclear what the future holds for it now.
It’s important to keep an eye on how things develop in the healthcare industry in the coming months and years because it’s changing fast, and there could be more shakeups ahead.
It’s no secret that the healthcare industry is in a state of flux right now. With the release of the Affordable Care Act, big players like CVS are making some big moves.
Cano Health, a small but promising startup, was in the final stages of negotiations to be purchased by CVS when the news broke that CVS was backing out. This sent the stock prices tumbling and left employees and investors reeling. It’s unclear what this means for Cano Health – will they be able to find a new buyer? Will they have to fold? Only time will tell.