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and the fact that Faux Bidness says pharma stocks will climb pretty much proves it. Those idiots are about as predictive as Jim Cramer when it comes to stock picking. They say buy, you sell, they say sell, you buy... It's a guaranteed money maker.
Pharma, especially big pharma has been positioning itself for health care reform for the last 4 or 5 years. They used to fight it, and they were big in the anti-reform movement back in the 90's but things have changed. In the business it's now thought of as inevitable that reform will happen and they may as well get out in front of it. The more people insured the more drugs get sold, the price per unit may come down and it's expected to come down but the overall sales will climb.
Big pharma with the exception of a few like Sanofi-Aventis, Merck-Schering & Pfizer-Wyeth are now paring down to become more like old style income stocks instead of the high growth darlings of the day traders. These smaller big pharma companies Eli-Lily, Bristol-Myers Squibb, Astra-Zeneca are pretty well positioned to make some serious dough off of health reform.
The groups that would do well in the case of a failure of the reform plans are almost exclusively the insurance industries. Those stocks will bounce if the plan fails.
All of course just my 2c, I wouldn't make a stock play on anything said by any member of the Faux bidness group.
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