If by health care stocks you mean drug stocks, these do show some upside. The AHP/Warner Lambert/Pfizer triangle tussle shows how important it is for these companies to "fill the gaps" in their own companies. Pfizer needs R&D for their powerhouse marketing and sales force. AHP, having settled the Redux problem is now a more attractive suitor. AHP would like WL's R&D/biotech resources. Now, only Merck seems to have a complete package. I spoke with one of their VPs yesterday who reassured us that he was not aware of any merger talks "It's not our style". Anyway, drug stocks, despite recent improvements probably have some upside.
If by health care you mean HMO, management, hospital, physician practice, I would stay away, away. Too many budget cuts, declining reimbursements and a heavy government hand in things. Not a good combo.
Then there's what I think of as technohealth...Medtronic, Arthrocare etc. So far, insurance companies have been more willing to pay for devices rather than services. The physician and hospital reimbursement for a joint replacement has declined but the cost of the titanium joint has not.
Just a few thoughts from an insider....
HeatherN |
