The healthcare venture formed by Amazon, Berkshire Hathaway and JPMorgan Chase now has a CEO, but investors no longer view the initiative as an immediate threat to healthcare companies' profits, according to Investor's Business Daily.
Amazon, Berkshire and JPMorgan announced on Jan. 30 they were joining forces to form a healthcare venture, and shares of healthcare companies plummeted. Shares of Walgreens, Anthem, CVS Health and UnitedHealth Group each tumbled more than 4 percent.
About four months later, Amazon, Berkshire and JPMorgan announced they had found a CEO to lead their healthcare venture. That news didn't rattle healthcare stocks. For example, shares of UnitedHealth and Walgreens gained 0.7 percent and 0.1 percent, respectively, on the day the announcement was made, according to the report.
On June 20, the market shrugged at the announcement by Amazon, Berkshire and JPMorgan that Atul Gawande, MD, would serve as CEO of the healthcare venture, according to Barron's. Walgreens shares ended the day up 5.3 percent, while shares of Humana and Aetna climbed 0.2 percent and 0.5 percent, respectively. UnitedHealth shares were down 0.1 percent, according to Barron's.
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