revelarts
10-16-2013, 11:12 AM
Big Pharma, Big Insurance and the traditional medical establishment hospital care system
Obamacare Will Bring Drug Industry $35 Billion In Profits
Despite expiring patents on blockbuster drugs and a wave of new regulation from the Affordable Care Act that will cost drug makers, the pharmaceutical industry will reap between “$10 billion and $35 billion in additional profits over the next decade,” a new analysis shows.
The health law, which will bring millions of uninsured Americans health benefits beginning in January 2014, will be a critical boon to pharmaceutical industry balance sheets, increasing revenue by one-third by the end of the decade, according to a new report from research and consulting firm GlobalData of London. That means the U.S. pharmaceutical industry’s market value will mushroom by 33 percent to $476 billion in 2020 from $359 billion last year.
The increase in sales and profits comes amid a wave of expiring patents on some of the industry’s most popular brand name drugs such as Lipitor from Pfizer (http://www.forbes.com/companies/pfizer/) PFE +1.71% (http://www.forbes.com/companies/pfizer/) (PFE), the blood thinner Plavix sold by Bristol-Myers Squibb (http://www.forbes.com/companies/bristol-myers-squibb/) BMY +2.45% (http://www.forbes.com/companies/bristol-myers-squibb/) (BMY), the diabetes drug Actos from Eli Lilly (LLY) and Takeda Pharmaceuticals as well as various cholesterol treatments sold by Abbott Laboratories (http://www.forbes.com/companies/abbott-laboratories/) ABT +5.78% (http://www.forbes.com/companies/abbott-laboratories/) (ABT) and its recently spun off proprietary business AbbVie (http://www.forbes.com/companies/abbvie/) ABBV +1.61% (http://www.forbes.com/companies/abbvie/) (ABBV). In large part because of competition from cheaper generic drugs, a report last year from IMS Health (http://www.forbes.com/health/), for example, said pharmaceutical manufacturers will see “minimal growth in their branded products through 2016.”
But the health law will pave the way for a major rebound in sales with an estimated $115 billion in new business over a 10-year period. Enrollment in the Medicaid health insurance program alone is expected to increase by about 19.5 million people, GlobalData said.
“The (Affordable Care Act) represents a dramatic transformation in the fortunes of pharmaceutical companies in what is the world’s largest market for prescription drugs,” said Joshua Owide, head of GlobalData’s industry dynamics team in a statement to Forbes. “This reform was inevitable in the US, and while a number of the changes will negatively impact pharma’s fortunes, the overall balance could be positive, thanks to an additional 32 million formerly uninsured citizens becoming potential customers, resulting in up to $115 billion of new business over a period of 10 years.”
http://www.forbes.com/sites/brucejapsen/2013/05/25/obamacare-will-bring-drug-industry-35-billion-in-profits/
....
Hospitals and other health care providers have been applauding the Supreme Court ruling. Why? Because, like it or not, the Act adds millions of new customers to their market and a way for insurance companies to pay for services. That can only mean more business for them. To me, that means growth. Maybe you're not in the health care business. But that doesn't mean that the health care business can't do business with your business. Growing organizations will still need help with office supplies, technology (http://www.inc.com/technology?lc=int_mb_1001), waste removal, capital equipment, even landscaping. Smart business owners I know hitch themselves with growing industries and promote services to them. This way they grow together.
http://www.inc.com/gene-marks/health-care-reform-business-opportunities-11-ways-to-profit.html/1
ObamaCare Enriches Only The Health Insurance Giants and Their Shareholders
So far in 2013 the value of the S& P health (http://www.forbes.com/health/) insurance index has gained 43%. Thats more than double the gains made in the broad stock market index, the S & P 500. The shares of CIGNA are up 63%, Wellpoint 47% and United Healthcare 28%. And if you go back to the early 2010 passage of ObamaCare, you will find that Obama’s sellout of the public interest has allowed the public companies the ability to raise their premiums, especially on small business, dramatically multiply their profits and send the value of their common stocks up by 200%-300%. This is bloody scandalous and should be a cause for concern even as the Republican opponents of the bill threaten the close-down of the government.
We warned you back on December4, 2009 in my blog ” The Horrendous Truth About Health Care Reform” that the Obama White House was handing a “ free ride for the health insurance industry” that would allow premium hikes of 8%-10% a year by CIGNA, Humana (http://www.forbes.com/companies/humana/) HUM +1.78% (http://www.forbes.com/companies/humana/), Aetna (http://www.forbes.com/companies/aetna/) AET +1.23% (http://www.forbes.com/companies/aetna/), UnitedHealth Group (http://www.forbes.com/companies/unitedhealth-group/) UNH +1.99% (http://www.forbes.com/companies/unitedhealth-group/) and Wellpoint, and as well a $500 billion taxpayer subsidy, a half trillion dollars without any requirement that the health insurers had to spend the subsidy on medical care. Several US Senators including Jay Rockefeller of West Virginia spoke to me openly of the outrageous sellout being foisted on the nation’s uninsured citizens.
At the time I wrote, Goldman Sachs research operation estimated that the 5 giants would increase profits by 10% a year from 2010 to 2019, sending their shares up an average of 59%. In truth, the shares of CIGNA and some others are up a multiple of several times since the contest was resolved by a very tight vote in early 2010. One startling reason for this amazing performance was that Obama took off the table “proposals to significantly reduce health care costs” as the giveaway in getting the bill through, according to Ron Susskind’s best-selling book ,”Confidence Men,” which I wrote about in a blog on September 24, 2011. ( “Obama’s Incoherent Policy (http://www.forbes.com/policy/)-Making”) Some 3 years later, UnitedHealthCare Group(UNH) was rewarded by being added to the elite list of the Dow 30 industrials.
http://www.forbes.com/sites/robertlenzner/2013/10/01/obamacare-enriches-only-the-health-insurance-giants-and-their-shareholders/
Obamacare Will Bring Drug Industry $35 Billion In Profits
Despite expiring patents on blockbuster drugs and a wave of new regulation from the Affordable Care Act that will cost drug makers, the pharmaceutical industry will reap between “$10 billion and $35 billion in additional profits over the next decade,” a new analysis shows.
The health law, which will bring millions of uninsured Americans health benefits beginning in January 2014, will be a critical boon to pharmaceutical industry balance sheets, increasing revenue by one-third by the end of the decade, according to a new report from research and consulting firm GlobalData of London. That means the U.S. pharmaceutical industry’s market value will mushroom by 33 percent to $476 billion in 2020 from $359 billion last year.
The increase in sales and profits comes amid a wave of expiring patents on some of the industry’s most popular brand name drugs such as Lipitor from Pfizer (http://www.forbes.com/companies/pfizer/) PFE +1.71% (http://www.forbes.com/companies/pfizer/) (PFE), the blood thinner Plavix sold by Bristol-Myers Squibb (http://www.forbes.com/companies/bristol-myers-squibb/) BMY +2.45% (http://www.forbes.com/companies/bristol-myers-squibb/) (BMY), the diabetes drug Actos from Eli Lilly (LLY) and Takeda Pharmaceuticals as well as various cholesterol treatments sold by Abbott Laboratories (http://www.forbes.com/companies/abbott-laboratories/) ABT +5.78% (http://www.forbes.com/companies/abbott-laboratories/) (ABT) and its recently spun off proprietary business AbbVie (http://www.forbes.com/companies/abbvie/) ABBV +1.61% (http://www.forbes.com/companies/abbvie/) (ABBV). In large part because of competition from cheaper generic drugs, a report last year from IMS Health (http://www.forbes.com/health/), for example, said pharmaceutical manufacturers will see “minimal growth in their branded products through 2016.”
But the health law will pave the way for a major rebound in sales with an estimated $115 billion in new business over a 10-year period. Enrollment in the Medicaid health insurance program alone is expected to increase by about 19.5 million people, GlobalData said.
“The (Affordable Care Act) represents a dramatic transformation in the fortunes of pharmaceutical companies in what is the world’s largest market for prescription drugs,” said Joshua Owide, head of GlobalData’s industry dynamics team in a statement to Forbes. “This reform was inevitable in the US, and while a number of the changes will negatively impact pharma’s fortunes, the overall balance could be positive, thanks to an additional 32 million formerly uninsured citizens becoming potential customers, resulting in up to $115 billion of new business over a period of 10 years.”
http://www.forbes.com/sites/brucejapsen/2013/05/25/obamacare-will-bring-drug-industry-35-billion-in-profits/
....
Hospitals and other health care providers have been applauding the Supreme Court ruling. Why? Because, like it or not, the Act adds millions of new customers to their market and a way for insurance companies to pay for services. That can only mean more business for them. To me, that means growth. Maybe you're not in the health care business. But that doesn't mean that the health care business can't do business with your business. Growing organizations will still need help with office supplies, technology (http://www.inc.com/technology?lc=int_mb_1001), waste removal, capital equipment, even landscaping. Smart business owners I know hitch themselves with growing industries and promote services to them. This way they grow together.
http://www.inc.com/gene-marks/health-care-reform-business-opportunities-11-ways-to-profit.html/1
ObamaCare Enriches Only The Health Insurance Giants and Their Shareholders
So far in 2013 the value of the S& P health (http://www.forbes.com/health/) insurance index has gained 43%. Thats more than double the gains made in the broad stock market index, the S & P 500. The shares of CIGNA are up 63%, Wellpoint 47% and United Healthcare 28%. And if you go back to the early 2010 passage of ObamaCare, you will find that Obama’s sellout of the public interest has allowed the public companies the ability to raise their premiums, especially on small business, dramatically multiply their profits and send the value of their common stocks up by 200%-300%. This is bloody scandalous and should be a cause for concern even as the Republican opponents of the bill threaten the close-down of the government.
We warned you back on December4, 2009 in my blog ” The Horrendous Truth About Health Care Reform” that the Obama White House was handing a “ free ride for the health insurance industry” that would allow premium hikes of 8%-10% a year by CIGNA, Humana (http://www.forbes.com/companies/humana/) HUM +1.78% (http://www.forbes.com/companies/humana/), Aetna (http://www.forbes.com/companies/aetna/) AET +1.23% (http://www.forbes.com/companies/aetna/), UnitedHealth Group (http://www.forbes.com/companies/unitedhealth-group/) UNH +1.99% (http://www.forbes.com/companies/unitedhealth-group/) and Wellpoint, and as well a $500 billion taxpayer subsidy, a half trillion dollars without any requirement that the health insurers had to spend the subsidy on medical care. Several US Senators including Jay Rockefeller of West Virginia spoke to me openly of the outrageous sellout being foisted on the nation’s uninsured citizens.
At the time I wrote, Goldman Sachs research operation estimated that the 5 giants would increase profits by 10% a year from 2010 to 2019, sending their shares up an average of 59%. In truth, the shares of CIGNA and some others are up a multiple of several times since the contest was resolved by a very tight vote in early 2010. One startling reason for this amazing performance was that Obama took off the table “proposals to significantly reduce health care costs” as the giveaway in getting the bill through, according to Ron Susskind’s best-selling book ,”Confidence Men,” which I wrote about in a blog on September 24, 2011. ( “Obama’s Incoherent Policy (http://www.forbes.com/policy/)-Making”) Some 3 years later, UnitedHealthCare Group(UNH) was rewarded by being added to the elite list of the Dow 30 industrials.
http://www.forbes.com/sites/robertlenzner/2013/10/01/obamacare-enriches-only-the-health-insurance-giants-and-their-shareholders/