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Traders work on the floor of the New York Stock ExchangeNEW YORK (Reuters) - U.S. stocks climbed more than 1 percent on Monday, rebounding from a sharp decline last week, helped by deal activity, especially in healthcare.


UnitedHealth Chief Executive Officer Hemsley takes part in a panel discussion in Beverly HillsHealth insurer UnitedHealth Group Inc agreed to buy Catamaran Corp in a deal worth about $12.8 billion to boost its pharmacy benefit business as it competes with bigger rivals such as Express Scripts Holdings Co . Pharmacy benefit managers (PBM) administer drug benefits for employers and health plans and run large mail order pharmacies, helping them get better prices from drugmakers. As employers look to cut prescription costs on expensive drugs, the deal with Catamaran will give UnitedHealth's pharmacy benefits unit, OptumRx, the scale to negotiate favorable prices from pharmacy companies. The purchase of Catamaran will increase UnitedHealth's market share to 15 percent to 20 percent of the people who receive their drug benefits through pharmacy benefit managers, BMO Capital Markets analyst Jennifer Lynch said in a research note.


The AIG logo is seen at its building in New York's financial district(Reuters) - American International Group Inc Chairman Robert "Steve" Miller intends to step down in July after five years in the role, the Wall Street Journal reported. The insurer's directors have not yet decided on a replacement, but the next outside chairman is expected to be a current board member, the Journal said, citing a person familiar with the matter. Miller, who joined AIG board in 2009 and became chairman in July 2010, was previously the chief executive of auto-parts maker Delphi Corp . AIG was not immediately available to comment. ...


Teva plant is seen in JerusalemIsrael's Teva Pharmaceutical Industries said it would buy U.S. neurology drug company Auspex Pharmaceuticals Inc for an equity value of $3.5 billion to boost its portfolio of treatments for the central nervous system. Teva, the world's largest maker of generic drugs, will offer $101 per share in cash, representing a premium of 42.4 percent to Auspex's Friday closing price, the companies said on Monday. In February Teva - Israel's biggest company by market value and revenue - said it was ready to return to making acquisitions after a year focused on cutting costs under its new chief executive, Erez Vigodman.


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