Biotech Values

[rph_in_wi]

Rising unemployment and other economic problems are causing Americans to visit the doctor less often, resulting in fewer prescriptions being written and filled in the U.S.

Pharmacy, and to a lesser extent, healthcare in general was always thought to be relatively recession-proof. What Walgreens is reporting is being seen in pharmacy's across the country but certainly shows that pharmacy can survive pretty well through an economic downturn.

What is surprising to me is the financial problems that large doctors groups and hospitals have been reporting. In my area all of the hospitals are reporting cash on hand issues and some have stopped building projects in mid-build. The largest hospital chain reports less than 2 months cash on hand and they are in the middle of 2 hospital building projects.

I'm curious if these same issues are being seem throughout the US or is it just a regional thing. One thing is for sure, people seem to be more interested in the costs of their healthcare. They are less likely to get the additional lab test or the elective surgery. They certainly are more informed. This can only be beneficial when the economy turns.

RPh