The Ledger
UnitedHealth Group’s second-quarter profit report beat Wall Street’s estimate by roughly 30 percent and pushed its stock up as much as 8 percent, the clearest signal yet that the insurer’s yearlong push to control medical costs is working. The company reported second-quarter 2026 revenue of 112.0 billion dollars and earnings from operations of 8.0 billion dollars, with adjusted earnings per share of 6.38 dollars, beating the average analyst estimate of about 4.85 dollars. Its medical care ratio, the share of premium revenue spent on medical claims, fell to 86.7 percent from 89.4 percent a year earlier, which the company attributed to benefit design and pricing discipline, member mix, and medical cost management initiatives. UnitedHealth raised its full-year 2026 adjusted earnings guidance to a range of 19.50 to 20.00 dollars a share, up from prior guidance of greater than 18.25 dollars, and its Optum health services unit posted 65.7 billion dollars in quarterly revenue and 4.0 billion dollars in operating earnings, a 160 basis point margin improvement. Confidence: High. Source: UnitedHealth Group’s second-quarter 2026 earnings release, company newsroom.
Eli Lilly agreed to pay up to 3.8 billion dollars for AtaiBeckley, betting cash and milestone payments on a psychedelic-derived drug for depression that has not responded to other treatments. Lilly will pay 6.75 dollars a share in cash, about 2.8 billion dollars in upfront equity value, plus a contingent value right worth up to 2.50 dollars a share, roughly 1 billion dollars more, tied to development and regulatory milestones for AtaiBeckley’s two lead programs: BPL-003, an intranasal synthetic 5-MeO-DMT compound in Phase 3 development for treatment-resistant depression that already holds FDA Breakthrough Therapy designation, and VLS-01, a buccal-film DMT formulation in Phase 2b. The cash price represents roughly a 40 percent premium to AtaiBeckley’s 30-day volume-weighted average share price, the deal carries no financing condition, and Lilly expects to close in the third quarter of 2026 pending shareholder and regulatory approval. Confidence: High on deal terms; Medium on ultimate commercial value, since both lead assets remain in mid-to-late-stage trials. Source: Lilly’s acquisition announcement, PR Newswire.
Johnson & Johnson and Abbott Laboratories both beat Wall Street’s second-quarter estimates and raised full-year guidance the same morning UnitedHealth reported, with J&J now on pace to cross 100 billion dollars in annual sales for the first time. J&J posted worldwide second-quarter sales of 25.3 billion dollars, up 5.6 percent operationally, and adjusted earnings per share of 2.90 dollars, ahead of the 2.85 dollar consensus estimate; the company raised full-year 2026 guidance to about 101.1 billion dollars in reported sales and 11.68 dollars in adjusted earnings per share, up 13 cents from its prior outlook. Abbott’s second-quarter sales rose 13.0 percent on a reported basis to 12.59 billion dollars, with adjusted diluted earnings per share of 1.31 dollars beating the 1.28 dollar estimate; the company raised its full-year adjusted EPS guidance to a range of 5.45 to 5.60 dollars, up from 5.38 to 5.58 dollars, while reaffirming 6.5 to 7.5 percent comparable sales growth. Confidence: High. Sources: Johnson & Johnson’s second-quarter 2026 results announcement, Abbott’s second-quarter 2026 earnings release, PR Newswire.
Big Sky Asset Management acquired Dallas-based HealthCap Partners, combining two healthcare-focused real estate investors as outpatient construction keeps pulling care away from hospital campuses. The July 15 deal, terms undisclosed, brings HealthCap’s portfolio of more than 150 healthcare properties across 28 states, including medical outpatient buildings, ambulatory surgery centers, specialty hospitals and senior housing communities built over a nearly 30-year history and more than 2.5 billion dollars in transaction volume, under Big Sky’s national investment and asset management platform. HealthCap president Nikki Matthews is joining Big Sky’s acquisitions team as a director; several Big Sky leaders, including chief executive Jason Signor, previously worked together at HealthCap’s predecessor firm, The Cirrus Group, before their paths split and reconverged in this deal. Confidence: Medium. The transaction is confirmed by both companies; the financial terms are not public. Source: Big Sky Asset Management’s acquisition announcement, GlobeNewswire via The Manila Times.
THE DEAL SHEET
| Target | Acquirer/Investor | Vertical | Value | Source |
|---|---|---|---|---|
| AtaiBeckley Inc. | Eli Lilly and Company | Biopharma, psychedelic-derived depression treatment | Up to $3.8 billion ($6.75/share cash, approximately $2.8 billion upfront equity value, plus up to $2.50/share, approximately $1.0 billion, in contingent value rights) | Lilly’s acquisition announcement, PR Newswire |
| HealthCap Partners, LLC | Big Sky Asset Management | Healthcare real estate, medical outpatient buildings | Undisclosed | Big Sky Asset Management’s acquisition announcement, GlobeNewswire via The Manila Times |
| AdvanCell | Series D group led by Ally Bridge Group and Alpha Wave, with Bain Capital Life Sciences, Fidelity Management & Research, T. Rowe Price, Eli Lilly and Sanofi Ventures among participants | Biopharma, targeted alpha radiotherapy for prostate cancer | $315 million oversubscribed Series D | AdvanCell’s financing announcement, company newsroom |
Molina reports July 22, Community Health Systems around July 22 to 23, Tenet July 24, Universal Health Services July 27, Centene around July 28, Humana and Privia Health both around July 29 to August 6, and Cigna July 30.