Canaccord Genuity and SVB Leerink initiated coverage of Castle Biosciences, which develops diagnostic tests for skin cancer. The firm has a price target of $26 and $28 per share for Canaccord and SVB, respectively.

Pharmacy benefit managers owned by insurance companies should not be worried about Amazon's entrance into the pharmaceutical industry, according to a report from SVB Leerink. Amazon's PillPack will have difficulty competing but poses some risk to large mail-order pharmacies, writes SVB Leerink's Ana Gupte.

During its first-quarter earnings call, Regeneron disclosed two deaths linked to cytokine release syndrome in a trial of its bispecific candidate REGN1979, being developed for follicular lymphoma. "Regeneron suggested the higher CRS toxicity was likely due to a heightened immune response, and noted the CRS was also seen in conjunction with increased tumor response," SVB Leerink's Geoffrey Porges said.

Centene CEO Michael Neidorff said the decision to purchase competitor WellCare Health for $15 billion "made more sense than I've seen in a long time," in part because uncertain and challenging environments are good times to act. SVB Leerink Partners analyst Ana Gupte said the deal creates "a $100 billion government powerhouse" because both insurers are involved in Medicare and Medicaid programs, and added it could lead to a new round of industry consolidation.

Drug distributors and pharmacy benefit managers could see Amazon as a competitor or a partner after the company's acquisition of online pharmacy PillPack, says Leerink Partners analyst Ana Gupte.