Today's noteworthy initiations include: Advance Auto Parts (AAP) initiated with a Hold at Jefferies...Aetna (AET) initiated with an Overweight at JPMorgan...AmSurg (AMSG) initiated with an Overweight at JPMorgan...Anthem (ANTM) initiated with an Overweight at JPMorgan...AutoZone (AZO) initiated with a Hold at Jefferies...Blue Bird (BLBD) initiated with an Outperform at BMO Capital...Broadridge (BR) initiated with an Overweight at Barclays...Brookline Bancorp (BRKL) initiated with a Neutral at Piper Jaffray...Camden National (CAC) initiated with an Overweight at Piper Jaffray...Cedar Fair (FUN) initiated with a Buy at Janney Capital...Cigna (CI) initiated with an Overweight at JPMorgan...Community Health (CYH) initiated with a Neutral at JPMorgan...Envision Healthcare (EVHC) initiated with an Overweight at JPMorgan...Everyday Health (EVDY) initiated with an Outperform at Cowen...Financial Institutions (FISI) initiated with an Overweight at Piper Jaffray...Flushing Financial (FFIC) initiated with an Overweight at Piper Jaffray...Genuine Parts (GPC) initiated with a Buy at Jefferies...Hasbro (HAS) initiated with a Buy at Sterne Agee CRT...Heartland Payment (HPY) initiated with an Equal Weight at Barclays...Humana (HUM) initiated with an Overweight at JPMorgan...Infinity Property (IPCC) initiated with an Outperform at JMP Securities...Intec Pharma (NTEC) initiated with a Buy at Maxim...Kindred Healthcare (KND) initiated with a Neutral at JPMorgan...MEDNAX (MD) initiated with an Overweight at JPMorgan...Medivation (MDVN) initiated with a Buy at Nomura...Monro Muffler (MNRO) initiated with a Buy at Jefferies...Nielsen (NLSN) initiated with an Outperform at William Blair...O'Reilly Automotive (ORLY) initiated with a Buy at Jefferies...Plains All American (PAA) initiated with a Hold at Evercore ISI...Plains GP Holdings (PAGP) initiated with a Buy at Evercore ISI...Progressive (PGR) initiated with an Outperform at JMP Securities...Rentrak (RENT) initiated with a Market Perform at William Blair...STORE Capital (STOR) initiated with an Outperform at BMO Capital...Six Flags (SIX) initiated with a Buy at Janney Capital...Surgical Care Affiliates (SCAI) initiated with a Neutral at JPMorgan...Team Health (TMH) initiated with an Overweight at JPMorgan...Trovagene (TROV) initiated with a Buy at Cantor...UnitedHealth (UNH) initiated with an Overweight at JPMorgan...Universal Health (UHS) initiated with an Overweight at JPMorgan...Vertex (VRTX) initiated with a Buy at Nomura...comScore (SCOR) initiated with an Outperform at William Blair.

Vertex Pharmaceuticals and TreeFrog Therapeutics announced that Vertex has obtained an exclusive license to TreeFrog's proprietary cell manufacturing technology, C-Stem, to optimize production of Vertex's cell therapies for type 1 diabetes, or T1D. TreeFrog and Vertex will collaborate to scale-up TreeFrog's process to produce and amplify cells for Vertex's T1D therapies. TreeFrog's proprietary technology platform, C-Stem, is designed to mimic the natural microenvironment, allowing cells to grow exponentially in 3D. The technology will enhance Vertex's ability to generate large amounts of fully differentiated cells for its portfolio of T1D cell therapies.

UnitedHealth Group is announcing support for people who may be concerned about their personal data potentially being impacted based on preliminary findings from the ongoing investigation and review of the data involved in the malicious criminal cyberattack on Change Healthcare. The company is also providing an update on progress in restoring Change Healthcare's products and services. Based on initial targeted data sampling to date, the company has found files containing protected health information or personally identifiable information, which could cover a substantial proportion of people in America. To date, the company has not seen evidence of exfiltration of materials such as doctors' charts or full medical histories among the data. "We know this attack has caused concern and been disruptive for consumers and providers, and we are committed to doing everything possible to help and provide support to anyone who may need it," said Andrew Witty, CEO of UnitedHealth Group. Given the ongoing nature and complexity of the data review, it is likely to take several months of continued analysis before enough information will be available to identify and notify impacted customers and individuals. As the company continues to work with leading industry experts to analyze data involved in this cyberattack, it is immediately providing support and robust protections, rather than waiting until the conclusion of the data review. People can visit a dedicated website at changecybersupport.com to get more information and details on these resources. A dedicated call center has been established to offer free credit monitoring and identity theft protections for two years to anyone impacted. The call center will also include trained clinicians to provide support services. Given the ongoing nature and complexity of the data review, the call center will not be able to provide any specifics on individual data impact at this time. The call center can be reached at 1-866-262-5342 and further details can be found on the website. The company, along with leading external industry experts, continues to monitor the internet and dark web to determine if data has been published. There were 22 screenshots, allegedly from exfiltrated files, some containing PHI and PII, posted for about a week on the dark web by a malicious threat actor. No further publication of PHI or PII has occurred at this time. While this comprehensive data analysis is conducted, the company is in communication with law enforcement and regulators and will provide appropriate notifications when the company can confirm the information involved. This is not an official breach notification. The company will reach out to stakeholders when there is sufficient information for notifications and will be transparent with the process. To help ease reporting obligations on other stakeholders whose data may have been compromised as part of this cyberattack, UnitedHealth Group has offered to make notifications and undertake related administrative requirements on behalf of any provider or customer. Change Healthcare has made continued strong progress restoring services impacted by the event. We have prioritized the restoration of services that impact patient access to care or medication. Pharmacy services are now back to near-normal levels, with 99% of pre-incident pharmacies able to process claims. Medical claims across the U.S. health system are now flowing at near-normal levels as systems come back online or providers switch to other methods of submission. Change Healthcare realizes there are a small number of providers who continue to be adversely impacted and is working with them to find alternative submission solutions and will continue to provide financial support as needed. Payment processing by Change Healthcare, which represents approximately 6% of all payments in the U.S health care system, is at approximately 86% of pre-incident levels and is increasing as additional functionality is restored. Other Change Healthcare services, including eligibility software and analytical tools, are being restored on a rolling basis with the active reconnection of our customers now the priority. To date, approximately 80% of Change functionality has been restored on the major platforms and products, and the company expects full restoration of other systems to be completed in the coming weeks. For the latest information on service restoration and customer support, please visit www.uhg.com/changehealthcarecyberresponse.

Healthcare Services Analyst Fidel holds a group luncheon investor meeting with SVP Sopcak in New York on April 23 hosted by Stephens.

Evercore ISI says that while neither OptumRx nor Cardinal Health (CAH) would confirm the winner of the contract, McKesson (MCK) confirmed it had won the contract beginning in July. Cardinal this morning announced that its pharmaceutical distribution contracts with OptumRx, which represented 16% of fiscal 2023 revenue, is expiring at end of June and will not be renewed. Evercore estimates the win would represent a 50c-65c earnings per share benefit to McKesson on a full-year basis or likely half of that given the contract does not start until July. The firm does not see Cardinal's announcement as "heralding a broadly more competitive period for the distributors, but rather a one-off contract shift given what was likely an off-market contract."