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Strategies & Market Trends : Sharck Soup
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To: Sharck who started this subject4/23/2001 1:25:14 AM
From: Devin123   of 37746
 
Here's an interesting read from the WSJ tomorrow re: Pharmaceutical co.'s. Pharmacy costs have risen approx. 30%+ in the last 5 years and are the #1 leading cause of rising health care costs. Physician remuneration from ins. co.'s prior to the last 6 mos. had been stable and in some cases gone down over the prior 5 years. This is just something to keep in the back of your mind if investing in pharmaceutical co.'s. In my opinion, they have shown repeatedly that they will not reasonably slow the increase in drug costs going forward, using "research costs" and patent maneuvering as means to keep prices up, and it's only a matter of time before congress steps in to control costs. They did it to some degree in physician-reimbursement with medicare. It will hurt share price if congress steps in here. This, however, is a much more organized and powerful industry than physicians and the weaker AMA.

interactive.wsj.com
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