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Aetna Inc, the third-largest U.S. health insurer, increased its forecast for full-year operating earnings after a stronger-than-expected profit in the first quarter. Aetna's members increased 122,000 from the fourth quarter and higher margins in its government and commercial business also boosted results in the latest quarter. ... Low hospital and medical use has helped keep claims down and profits up in the past few years, even as the U.S. healthcare system has undergone major reforms under the Affordable Care Act. (4/28)

A wave of newly insured patients coupled with fewer uninsured patients and a higher rate of admissions drove Universal Health Services Inc.’s revenue and profit growth in the first quarter, the hospital operator said Monday. Shares, up 45% over the past 12 months, rose 2% in recent late trading to $123, just shy of a 52-week-high set Friday during regular trading. Like its industry peers, Universal Health—which operates medical, surgical and behavioral-health facilities—has benefited from an increase in insured patients under the Affordable Care Act. (Armental, 4/27)

The FDA has filed a court order against Medtronic that says the medical device giant must halt most production and distribution of its Synchromed II drug pumps, which are implanted devices used to treat patients with cancer, chronic pain and severe muscle spasms. Among other defects, some Synchromed pumps had to be recalled because they could lose battery power and fail, endangering patients. In other cases, the devices could cause patients to receive too much or too little medication. Medtronic generally did not recommend that patients have the devices removed, unless they were proven to be failing. (Perrone, 4/27)

Mylan NV’s board unanimously rejected a $40.1 billion takeover offer from Teva Pharmaceutical Industries Ltd., saying it’s too low and doesn’t address the difficulties of combining companies with different cultures. The board won’t consider talks to sell the company unless it gets an offer of significantly more than $100 a share, Mylan said in a statement Monday. Teva offered $82 a share in cash and stock for Mylan last week. ... Consumer advocates, pharmacists and other groups have expressed concern that a merger of Teva and Mylan would contribute to a trend of rising prices for generic drugs. Some 10 percent of generic drugs doubled in price between July 2013 and June 2014, and half of all generic drugs rose in price, according to an analysis of Centers for Medicare and Medicaid data cited by Senator Bernie Sanders, an independent from Vermont, and Representative Elijah Cummings, a Democrat from Maryland. (Harrison, 4/27)

[To] the heads of Massachusetts’ most prominent drug makers, the problem isn’t how much the public is paying for their drugs but rather that patients don’t fully understand what they get for their money. “One thing we haven’t done a good job at is telling the story,” Dr. Jeffrey Leiden, chief executive of Boston-based Vertex Pharmaceuticals, said Monday at a Boston conference on medical innovation hosted by the hospital giant Partners HealthCare. “We need to tell the story of the value of what we do in life sciences because that’s the inspiration for what we’re going to do in the future.” (McCluskey, 4/28)