Buy Genworth to Bet on Biogen’s Drug, Raymond James Says
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Investors should buy Genworth Financial Inc. shares on the prospect that Biogen Idec Inc.’s experimental Alzheimer’s drug could reduce claims costs at the long-term care insurer, Raymond James & Associates Inc. said.
“Investors in Genworth are receiving a free option on the drug,” Steven Schwartz, an analyst at Raymond James, said in a note Monday. “About 50 percent of Genworth’s long-term care insurance claims payments are for Alzheimer’s or other forms of dementia.”