Medical blog » Snap

Sector Snap: Women's retailers trade mostly higher

admin — Sun, 07 Dec 2008 00:51:02 +0000

Shares of women’s clothing retailers traded mostly higher on Tuesday, despite more data showing consumers were reluctant to spend this holiday season.
The International Council of Shopping Centers said weekly same-store sales dropped 1.5 percent last week amid continued economic woes and wintry weather.
On a year-over-year basis, same-store sales fell 1.8 percent, according to the association’s weekly index, which tracks sales of about 40 retailers.
Same-store sales are sales at stores opened at least a year and are considered a key indicator of a retailer’s health.
In a client note, Thomas Weisel Partners analyst Liz Dunn said consumers have been reluctant to spend amid tighter credit and a weak housing market.
But looking ahead to 2009, Dunn said retailers will handle the year “more gracefully” than in 2008 by looking for ways to cut costs and control inventory.
“Inventory discipline is not optional, and almost every company seems to be focused on staying lean until demand returns, instead of attempting to predict when demand will return and building stocks ahead of that time,” Dunn wrote in a client note.
Also on the positive side, Dunn said lower gas prices have put money back in consumers’ pockets.
Shares of Limited Brands Inc. rose 19 cents to $9.69. Elsewhere, shares of Chico’s FAS Inc. gained 5 cents to $3.94.
Meanwhile, AnnTaylor Stores Corp.’s stock advanced 10 cents, or 2 percent, to $5.10, and Coldwater Creek Inc. declined 18 cents, or 6.6 percent, to $2.57.
Christopher & Banks Corp. rose 3 cents to $4.80.
Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

Sector Snap: Health insurers

admin — Mon, 17 Nov 2008 07:09:22 +0000

Shares of health insurers were battered throughout 2008, in part because of smaller profit margins bought on by years of price cuts. Analysts on Wednesday offered differing opinions on whether that will continue in 2009 and beyond.
Citi Investment Research analyst Charles Boorady said he thinks managed care providers will be able to post steadier margins in 2009 and 2010 because the recession is reducing their medical costs. However, an analyst from
) said profit margins will keep decreasing until 2011.
Based on data from the Centers for Medicare and Medicaid Services, Boorady said spending on prescription drugs is down, and Medicare is spending less on benefits. But those problems for health insurers are counteracted by steady prices and slower growth in medical costs such as testing and drugs, he wrote.
Boorady said health spending growth has decreased over the last three years, falling to 6.1 percent in 2007. That’s the slowest pace since 1998, he said. But profit margins declined from 2006 to 2008, and he expects them to hold steady in 2009 and 2010.
Several health insurers have raised prices in recent months. But Matthew Borsch of Goldman Sachs said he doesn’t think the companies will be able to maintain those prices. He said commercial coverage is decreasing because of job losses, and added that the high profit margins on commercial risk insurance could decrease.
UnitedHealth Group Inc.
) as their top pick in the sector. Shares of the Minnetonka, Minn., company slipped 15 cents to $26.35 in afternoon trading.
Elsewhere, shares of
Humana Inc.
) fell $1.12, or 3 percent, to $36.85, and
Cigna Corp.
) lost $1.06, or 5.8 percent, to $17.11.
) Inc. stock slipped 4 cents to $43.95, and
Aetna Inc.
) sank $1.36, or 4.5 percent, to $29.
Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

Pfizer To Snap Up Wyeth For $68 Bln

admin — Wed, 05 Nov 2008 16:38:39 +0000

(RTTNews) – Rumors of a potential merger between drug giant Pfizer Inc. (
) have been doing the rounds since 2007. Now, it’s no more a rumor. It’s real and Pfizer is all set to acquire Wyeth in a $68 billion deal.
Monday, Pfizer announced that it has agreed to acquire Wyeth in a cash-and-stock transaction currently valued at $50.19 per share, or a total of about $68 billion. The Boards of Directors of both companies have approved the combination.
Under the terms of the transaction, Pfizer will pay $33 in cash and 0.985 of a share of its stock for each share of Wyeth. Based on the closing price of Pfizer stock as of January 23, 2009, the stock component is valued at $17.19 per share. The deal represents a premium of 15% over Wyeth’s closing stock price of $43.74 on Friday.
The transaction, which comes in the thick of the financial crisis, creates a pharmaceutical behemoth with combined revenue of about $75 billion. A consortium of banks has provided commitments for a total of $22.5 billion in debt to Pfizer to finance the deal.
The proposed transaction, which is subject to customary closing conditions, including antitrust clearance, is expected to close at the end of the third quarter or during the fourth quarter of 2009.
In connection with the proposed transaction, Pfizer has decided to reduce its quarterly dividend per share by half to $0.16. The deal is expected to be accretive to Pfizer’s adjusted earnings per share in the second full year after closing and yield cost savings of about $4 billion to be fully realized by the third year after closing.
Patents covering some of Pfizer’s key drugs are set to expire in the next few years. The company’s cholesterol-lowering Lipitor, one of the drug industry’s historical best-selling drugs with annual sales of about $12 billion, is set to lose patent protection in November of 2011. The drug accounted for 26% of the company’s total sales in 2008.
With patent expirations looming large, and with the pipeline not likely to churn out any new products in the immediate future, the acquisition of Wyeth will help to fill Pfizer’s impending revenue gap. Wyeth’s key drugs include Enbrel, a drug prescribed for rheumatoid arthritis and other auto-immune diseases, antidepressant drugs Effexor and Effexor XR and Prevnar, a pneumococcal vaccine. Enbrel topped $3 billion in total sales, Effexor raked in worldwide revenue of $3.93 billion, while Prevnar notched up sales of $2.72 billion in 2008.
For the combined company that will be an industry leader in human, animal and consumer health, no drug is expected to account for more than 10% of the revenue in 2012.
Pfizer would also inherit the legal woes related to Wyeth’s hormone replacement drugs Prempro and Premarin. Wyeth’s hormone replacement therapy drugs, Premarin and Prempro touted as “magic bullets” are indicated for the relief of hot flashes and night sweats, associated with menopause. After the U.S. government’s Women’s Health Initiative study found that healthy postmenopausal women enrolled in the study who were treated with the hormone replacement therapy drugs, Premarin and Prempro had increased risk of invasive breast cancer, stroke and blood clots, Wyeth came under fire. The study, which was to continue until 2005, came to an abrupt halt in early June 2002. Wyeth is facing claims by more than 10,000 women in the U.S, who allege that they developed breast cancer after taking the hormone replacement therapy drugs.
Pfizer has grown mostly by acquisitions which were stock-swap deals except for a few cash transactions. Some of the best-selling drugs of Pfizer were added to its roster as a result of acquisitions. Pfizer acquired full rights to Lipitor, following its merger with Warner-Lambert in February 2000 in a $90 billion stock-swap deal. Celebrex and its follow-on drug, Bextra were added to Pfizer’s arsenal of drugs through the acquisition of Pharmacia Corp. in 2002. Pfizer acquired Pharmacia for $60 billion in stock. Bextra, a painkiller was taken off the market in 2005 due to health risks.
In the fourth-quarter ended December 31, 2008 Pfizer’s net income plunged to $266 million or $0.04 per share from $2.72 billion or $0.40 per share in the year-ago quarter, hurt mainly by charges associated with the resolution of certain litigations involving its non-steroidal anti-inflammatory pain medications Bextra and Celebrex.
On an adjusted basis, earnings climbed 29% to $4.39 billion or $0.65 per share from $3.40 billion or $0.50 per share in the prior year quarter. First Call/Thomson Financial analysts were looking for earnings of $0.59 per share for the quarter.
Quarterly revenue decreased 4% to $12.35 billion from $12.87 billion last year and came below analysts’ consensus estimate of $12.54 billion.
Wyeth’s net income for the fourth-quarter was $960.39 million or $0.71 per share, down from $1.017 billion or $0.75 per share in the year-ago period. Excluding charges related to the company’s productivity initiatives, quarterly earnings were $1.049 billion or $0.78 per share, compared to $1.059 billion or $0.78 per share in the previous year. Wall Street analysts expected earnings of $0.79 per share. Analysts’ estimates typically exclude one-time items.
Wyeth’s net revenue for the quarter dropped to $5.348 billion from $5.763 billion in the prior year and came below analysts’ estimates of $5.79 billion.
Pfizer, which has been in restructuring mode since 2005, has retained its focus on cutting costs, including outsourcing and offshoring to ease the pressure on its top line.
From 2005 to the end of 2008, Pfizer has reduced its workforce significantly. Pfizer paid $2.03 billion in severance costs in 2007, compared to $809 million in 2006 and $303 million in 2005.
Pfizer has about 81,900 employees and Wyeth has about 47,500 employees. According to Pfizer, a new cost-reduction initiative that is going to be implemented is expected to result in incremental savings of approximately $3 billion by the end of 2011. As part of this cost-reduction initiative, Pfizer intends to reduce its workforce by approximately 10%. The company also intends to reduce the number of manufacturing sites to 41 from 46, as well as reduce its facilities square footage by approximately 15%. In conjunction with this program, Pfizer expects to incur costs of approximately $6 billion on a pre-tax basis, of which $1.5 billion has been incurred. In addition, Pfizer is also planning to reduce the combined workforce by 15%.
Following the announcement of the deal, Standard & Poor’s Ratings Services said it may lower Pfizer’s ‘AAA’ ratings to the “AA” category, “given the additional leverage and continuing challenge of medium-term patent expirations on important products”.
PFE is currently down 9.46% trading at $15.80 on a volume of $134 million shares.
WYE is up 0.59% trading at $44 on a volume of 66.26 million shares.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2009 RealTimeTraders.com, Inc. All Rights Reserved

Sector Snap: Goldman positive on generic drugs

admin — Mon, 08 Sep 2008 16:07:37 +0000

on Wednesday gave positive outlooks for Mylan Inc. and
Industries Ltd., saying the top generic drug developers will likely benefit from health reforms in the coming years.
In a note to investors, analyst Randall Stanicky, also said buyout activity at the companies has positioned them well for competitiveness.
The new presidential administration and Congress will likely deal with some type of health care reform plan in an effort to reduce costs. During his campaign, President-Elect Barack Obama said his plan would work to increase the use of cheaper generic drugs.
Stanicky added Canonsburg, Pa.-based Mylan to his “Buy” list, saying the company will likely have positive fourth-quarter results and 2009 guidance. He said his $13 price target on the company leaves some room for upside.
Mylan bought Indian drugmaker Matrix Laboratories in 2006, and then purchased the generic drug business of
) KGaA of Germany in 2007, more than tripling its revenue. The acquisitions also expanded the company’s presence in Europe, the Middle East, Africa, and the Asia-Pacific region.
Meanwhile, Israel-based Teva recently completed its $7.5 billion buyout of
) Inc., further consolidating the company’s position as the leading generics maker in the world.
“Overall, we believe Teva’s global reach and scale make it a best-in-class generic manufacturer and allow for geographic diversification and growth from emerging markets,” Stanicky said in a note to investors.
He reaffirmed a “Buy” rating and $50 price target.
Shares of Mylan fell 5 cents to $10.28, while shares of Teva fell 42 cents to $41.51 in afternoon trading. Elsewhere in the sector, shares of Corona, Calif.-based
Watson Pharmaceuticals Inc.
) fell 7 cents to $24.77.
(This version CORRECTS the name of the lead analyst.)
Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

Sector Snap: Hospital Operators

admin — Mon, 08 Sep 2008 09:36:57 +0000

Associated Press
09.12.08,
1:55 PM ET
Shares of hospital operators received a boost Friday as analysts gave mostly upbeat outlooks for several companies based on a mix of admissions, management and debt improvements.
In notes to investors late Thursday, both Banc of America and Pomeroy Research said companies including Dallas-based
Tenet Healthcare Corp.
) and Naples, Fla.-based
Health Management Associates Inc.
) have positioned themselves for positive performances in the market.
Shares of Health Management rose 17 cents, or 3.1 percent, to $5.66 and Tenet shares gained 22 cents, or 3.5 percent to reach $6.43.
“With a relatively new management team empowered to make changes, the company has made a number of changes which should lead to improved results,” said Banc of America analyst Kevin M. Fischbeck, giving a “Neutral” rating to Health Management.
He also initiated coverage on Tenet with a “Neutral” rating and $7 price target, also citing improvement in that company’s admissions figures.
Pomeroy Research analyst A.J. Rice, through Soleil Securities Group Inc., initiated a “Hold” rating on Health Management, citing a decline in bad debt both for the company and industry as a whole. Also, insider buying at the company suggests long-term confidence.
Bad debt is the amount of debt a hospital incurs from treating uninsured or underinsured patients and has been unable to collect.
Rice also initiated a “Hold” rating on Tenet, citing improvements in admissions growth and an initiative to hire more physicians.
Both analysts also started neutral coverage on Brentwood, Tenn.-based
LifePoint Hospitals Inc.
) based on factors including the company’s guidance, admissions improvements, and physician recruiting efforts.
LifePoint shares rose 71 cents, or 2.1 percent, to $34.42.
Analysts offered conflicting outlooks on King of Prussia, Pa.-based
), though.
Banc of America’s Fischbeck initiated coverage with a “Sell” Rating and $59 price target, expecting slowdowns in both the company psychiatric hospitals and Las Vegas operation. Meanwhile, Pomeroy’s Rice recommended purchasing shares, setting a price target of $75, citing two straight quarters of better-than-expected profit and stable management.
Shares of Universal Health Services rose 8 cents to $65.03.
Elsewhere in the sector, shares of Shares of Franklin, Tenn.-based
Community Health Systems Inc.
) rose 22 cents to $34.49 on conflicting outlooks.
Banc of America’s Fischbeck initiated coverage with a “Buy” rating and $42 price target, citing the long-term benefits of the Triad buyout. Meanwhile, Pomeroy’s Rice gave the company a “Hold” rating, citing potential disruptions because of hurricane activities.
Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

Sector Snap: Diabetes drugs could see FDA pressure

admin — Fri, 11 Jul 2008 08:08:28 +0000

New Food and Drug Administration guidelines for diabetes drugs could mean higher study costs and delays in reaching the market for several companies, including Amylin Pharmaceuticals Inc., as the agency focuses on potential heart risks.
On Wednesday, the Food and Drug Administration updated guidance for new diabetes drugs, calling for more scrutiny on heart condition risks. Two years ago, concern was raised over potential heart risks for patients taking GlaxoSmithKline’s diabetes drug Avandia. Both the American Diabetes Association and its European counterpart have removed the drug from their recommended treatments, and consumer group Public Citizen is urging U.S. regulators to ban the drug.
For some companies, the new FDA guidelines could mean additional or expanded clinical trials, delaying the entrance of their products to the market. San Diego-based Amylin Pharmaceuticals Inc. is in the midst of wrapping up development of exenatide LAR, the once-weekly version of its twice-daily diabetes drug Byetta. Meanwhile, Denmark-based Novo Nordisk, is developing the once-daily drug liraglutide.
Wall Street, though, remains cautiously optimistic that the new FDA guidelines will have little impact on Amylin exenatide LAR’s regulatory review.
“We believe upon meta-analysis that Byetta, and as an extension, exenatide LAR, will show minimal or no increase of cardiovascular event risk,” said Lazard Capital Markets analyst Matthew Osborne, in a note to investors.
He said study results on the drugs have so far been favorable in regard to cholesterol levels, blood pressure and weight.
Still, Amylin has not received FDA approval yet to include data from a combined Byetta/LAR patient database of 3,000 people for an application seeking approval, said Citi analyst Dr. Yaron Werber, in a note to investors.
“If the FDA requires stand-alone LAR data, we believe the existing data may be insufficient, requiring an additional two year safety trial,” he said.
But, if the drug is approved on the current data, Amylin would be able to jump ahead of its competitors, which might need longer clinical trials, he added, maintaining a “Hold” rating on the stock.
Byetta, which is made in a partnership with Indianapolis-based Eli Lilly & Co. and Cambridge, Mass.-based Alkermes Inc., has had its ups and downs over the past year. Analysts have considered sales lackluster for several quarters now with Amylin reporting a wider third-quarter loss on higher costs for an expanding sales force and drug development. Concerns were also heightened when the company and FDA combined to report six deaths in patients who took the diabetes treatment. The deaths were in patients who developed acute pancreatitis and have not been directly connected to Byetta.
More recently, Byetta and exenatide LAR may have received a boost after American Diabetes Association and European Association for the Study of Diabetes updated their Type 2 diabetes treatment guidelines, placing Byetta’s class of blood-sugar controlling drugs, called GLP-1 analogs, as a secondary option for patients. Novo’s developing liraglutide is in the same class of treatments.
Elsewhere in the sector, Japan-based Takeda Pharmaceuticals is currently awaiting FDA approval on its drug candidate alogliptin, which is part of the DPP-4 inhibitor class of drugs. Both GLP-1 and DPP-4 drugs have the same goal of regulating blood-sugar, but do it through a different process.
New York-based Bristol-Myers Squibb Co. and London-based AstraZeneca are also developing a DPP-4 drug, which will be called Onglyza if approved.
Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

Good health is a snap at new fitness center

admin — Fri, 11 Jul 2008 07:35:20 +0000

Sherman Middle School teacher Jackie Scramlin of Holly knew she wanted to reclaim her health by getting more physically active and dropping a few pounds.
That’s why she was one of the first people to join Snap Fitness in Holly, following its opening on Friday, Nov. 28. “Another teacher told me about it,” said Scramlin. “So far, it has been great.”
Located in the Holly Foods Plaza at 15213 N. Holly Rd., Snap Fitness is Holly’s first and only full-service health club. A ribbon cutting by the Holly Area Chamber of Commerce was held on Friday, Dec. 12, welcoming this new business into the community.
With state-of-the-art Matrix cardio equipment, strength training machines and free weights, Snap Fitness is a destination for people who appreciate quality equipment, a convenient location and no long-term contracts. “Snap Cinema” adds media entertainment and fun to each workout.
The 2,300-square-foot health club provides a friendly atmosphere, with no long lines or waiting for equipment use. Men’s and women’s changing rooms make the transition from workout — to work or home — easy and convenient.
Johny Thomas and Yusef Thomas own snap Fitness in Holly. They are com1mitted to customer-service excellence, focusing on the needs and goals of each of their members, calling them by name as they walk through the door.
One-on-one personal training is another important aspect of Snap Fitness. A free, personal training session is available with each new membership, providing a “road map of success” with a custom-designed fitness routine.
“We’re also waiving the new-member enrollment fee during the month of December,” said Yusef Thomas.
But the biggest asset of Snap Fitness is its accessibility. Open 24 hours a day with personalized card-key access, Snap Fitness members can work out day and night, to accommodate their busy schedules. “It’s like having your own private gym — without the fuss of having expensive exercise equipment to purchase and maintain,” said Johny Thomas.
Members at Snap Fitness also have access to all 1,500 Snap Fitness locations nationwide, so members can continue their fitness routines while away from home.
Snap Fitness in Holly is staffed daily from 9 a.m. to 9 p.m., then is available by personalized card-keys for “after hour” use.
For more information, call Snap Fitness at (248) 634-2000, or visit their Web site at
.

Snap Fitness Sets Goal of 2000 Clubs by ‘09

admin — Sun, 25 May 2008 16:19:26 +0000

CHANHASSEN, MN-A new fitness center concept has sprung up within the past few years, with a small footprint and 24-hour accessibility, to rival other upstarts and big-box gymnasiums. The 4-year-old Snap Fitness company, based here, has 1,690 franchised locations either open or under construction, with a goal of 2,000 locations by 2009. The company is seeing dozens of clubs open each month.
The $16 billion fitness center industry has seen many different styles of gym open, from the first membership clubs to the big-box Lifetime Fitness giants, and from the male-intensive Gold’s Gym to the females-only Curves. Snap CEO and founder Peter Taunton tells GlobeSt.com that his niche is size, and ease of use. “We typically run from 2,500 to 3,500 sf, much smaller than the average fitness center,” he says. “With that small footprint, we’re more flexible on the real estate, we can be in your neighborhood strip center, next to the Subway and Blockbuster.”
Weights, treadmills, and exercise machines are offered at Snap. Though the size doesn’t allow a member all the frills that some clubs have, such as pools, running tracks, gymnasiums, climbing walls, racquetball courts or even large locker rooms, the flexibility is what Taunton says allows the company to offer its other weapon: proximity. “Ninety percent of our members (the company claims it’s served 40,000 people) live within two miles of our clubs. It’s right around the corner,” he says. “You come home, you can grab your gear and zip out to our center, get a good workout and be home again quickly,” Taunton says. The clubs are staffed during the day, but members can request a key card to get in during late hours, and cameras and call buttons are available at each center.
Franchisees own most of the Snap centers. “We have 10 company-owned locations,” Taunton says. The properties are spread throughout the US and Canada, as well as India, and “we’re looking into other global markets,” he says.
Center memberships start at around $1 per day, with a one-time $49 enrollment fee, with no contracts. Though the monthly fee isn’t too much lower than a membership at the larger clubs, any little bit that can be saved helps in this economy, Taunton says. “We know that despite these hard times, people know they need to eat sensibly and move their feet. If they can dial their membership back a little, that’s good too.”

Sector Snap: Health insurers

admin — Fri, 23 May 2008 18:10:48 +0000

Profit margins for health insurers may be stabilizing after several years of declines, a Citi Investment Research analyst said Wednesday, seeing a potential positive from the U.S. economic slump.
Based on data from the Centers for Medicare and Medicaid Services, Charles Boorady said spending on prescription drugs is down, and Medicare is spending less on benefits. But those problems for health insurers are counteracted by steady prices and slower growth in medical costs such as testing and drugs, he wrote.
Shares of health were battered throughout 2008 in part because of years of price cuts, which lead to smaller profits as the companies spent greater portions of their premium revenue on providing care.
Boorady said health spending growth has decreased over the last three years, falling to 6.1 percent in 2007. That’s the slowest pace since 1998, he said. But profit margins declined from 2006 to 2008, and he expects them to hold steady in 2009 and 2010.
The analyst said
UnitedHealth Group Inc.
) is his top pick in the sector because its share price is relatively low compared to its expected profits. Shares of the Minnetonka, Minn., company rose 47 cents to $26.97 in afternoon trading.
Elsewhere, shares of
Humana Inc.
) fell 62 cents to $37.35, and
Cigna Corp.
) lost 44 cents to $17.73.
) Inc. stock added 20 cents to $44.18.
Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

Sector Snap: Health care IT falls on funding delay

admin — Wed, 02 Apr 2008 07:29:09 +0000

Health care information technology stocks slid Tuesday after a Leerink Swann analyst said the electronic medical records portion of President-elect Barack Obama’s economic stimulus package will not help the sector right away.
“Our best guess as to the time line for federal money to work through state grant and loan programs in any material way is at least 12-18 months,” Bret Jones said in a client note. The climate for health care IT companies is still very difficult, Jones wrote, and investors may be disappointed as they wait for the stimulus package to take effect.
In his presidential campaign, Obama proposed greater funding for electronic medical records as part of a plan to save money for patients and reduce health care premiums. That funding is expected to be tied to an impending economic stimulus plan.
The analyst predicted health care IT stocks will be flat or lower until mid-2009 as hospital health care IT projects get phased in or delays occur. He said they will recover later in the year, when the funding is more certain and the details of the Obama plan are better understood.
Jones downgraded shares of
Cerner Corp.
), AthenaHealth Inc., Allscripts-Misys Healthcare Solutions Inc. and
Quality Systems Inc.
) to “Market Perform” from “Outperform.” Each of those stocks has climbed at least 20 percent since Dec. 1, with shares of Allscripts and Quality Systems rising more than 50 percent.
In afternoon trading, AthenaHealth shares fell 81 cents, or 2.3 percent, to $35.04, while Cerner stock fell $2.09, or 5.3 percent, to $37.25 and Quality Systems shares gave up $2.46, or 5.8 percent, to $39.66. Shares of Allscripts-Misys lost 73 cents, or 7.3 percent, to $9.26.
He said the stocks may decline when the companies begin to report their fourth quarter results. As the reports come in, Jones said, investors will see the results of cutbacks in hospital spending as the hospitals work through the damaged credit market, lower admissions at hospitals and increased bad debt.
Based on contact with a lobbyist, Jones said Obama’s health care staff plans to direct $5 billion to $10 billion to health care IT funding. However, not all of that funding will be used for electronic medical records, he said: Some will be used on infrastructure and setting up a national health information network.
He added that Watertown, Mass.-based AthenaHealth may not benefit very much from the stimulus plan because its AthenaClinics is not a leading emergency medical records product yet.
During the expected sector retreat, Jones recommended shares of companies that do business with ambulatory clinics like AthenaHealth, Quality Systems and Allscripts. His secondary recommendation was inpatient vendors like Cerner and
Eclipsys Corp.
Shares of Eclipsys fell 83 cents, or 5.6 percent, to $13.92.
Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed