Zacks Industry Outlook Highlights: UnitedHealth Group Inc., Cigna Corp., Pfizer Inc., GlaxoSmithKline Plc and Merck & Co Inc.

For Immediate Release

Chicago, IL – December 18, 2009 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Healthcare Industry, including UnitedHealth Group Inc. (UNH - Analyst Report), Cigna Corp. (CI - Analyst Report), Pfizer Inc. (PFE - Analyst Report), GlaxoSmithKline Plc (GSK - Analyst Report) and Merck & Co Inc. (MRK - Analyst Report).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/28445/Healthcare+Stock+Review+-+Dec.+2009.

Healthcare Stock Review – Dec. 2009

The healthcare sector comprises different industries, ranging from managed care organizations, healthcare facilities providers and medical devices manufacturers to biotech and pharmaceutical companies. Consequently, we believe that investors in this sector should be mindful of the different drivers and appropriate metrics associated with the various sub-sectors.

In the present scenario, investor sentiment in healthcare continues to be driven by decisions in Congress related to government funding and the state of the broader economy. In view of the ongoing healthcare reform debate in Congress, healthcare policy changes remain an important indicator to investing in the sector.

Even though legislation -- which aims to cover nearly all Americans by providing government subsidies to help pay premiums irrespective of health or income -- was passed in the House of Representatives, it is facing opposition in the Senate mainly due to the government’s intention to compete with private insurers.

Under the legislation, practices such as denying coverage on the basis of pre-existing medical conditions would be discontinued and insurers would no longer be able to charge higher premiums on the basis of gender or medical history. Furthermore, the industry would no longer enjoy an exemption from federal antitrust restrictions on price gouging, bid rigging and market allocation. Health insurers such as UnitedHealth Group Inc. (UNH - Analyst Report) and Cigna Corp. (CI - Analyst Report) could face increased competition, more scrutiny and fewer protections under the bill.

The House version of the bill would not be profitable to drugmakers like Pfizer Inc. (PFE - Analyst Report), GlaxoSmithKline Plc (GSK - Analyst Report) and Merck & Co Inc. (MRK - Analyst Report). They would be required to pay rebates to the government for drugs used by the elderly and disabled Medicare patients who also are on Medicaid.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5510.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5511.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

 

 

Read the full analyst report on UNH

Read the full analyst report on CI

Read the full analyst report on PFE

Read the full analyst report on GSK

Read the full analyst report on MRK