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Biotech / Medical : Merck -- Ignore unavailable to you. Want to Upgrade?

To: Racso who wrote (1214)	5/12/1999 12:32:00 PM
From: Doug	Read Replies (1) \| Respond to of 1580

Rasco: Many thanks for the technical details. There is one overiding caveat that is now significant. In the past, it was possible to offset the CPI rise as prices of other Goods and services were falling. The capacity to offset higher Medical cost is no longer valid and I believe the Drug Companies will be pressured to reduce the cost of their products. So far the Drug Industry had escaped doing what all other Industries have done viz lowered the cost to the Consumer. Medaid and Medicare with PPS is just the beginning. The HMO's may line up next. That clout can be drastic. See what the Govt did to Nursing Home stocks. The future of the drug Industry groth is now dependent on their ability to introduce very expensive Block Buster drugs that have revolutionary therapies or Increase market share by a price war eliminatng the weaker players. New Drugs are a long term project. In view of this, how do you see The Drug Industry fairing in an Inflation free enviro. If Competition is going to intensify,who will be the stand outs that we should concentrate on.? Thanks.