Friday, April 27, 2007

Merck and Schering, Buoyed by Medicare, May Lead Stock Advances in 2007

(Bloomberg) -- Pharmaceutical stocks are headed for their biggest annual gain since 2000 after a new U.S. drug insurance program and industrywide job cuts helped profits beat analysts' estimates.

The 14-member Standard and Poor's 500 Pharmaceuticals Index added 8.4 percent since Jan. 1, led by a 35 percent rise by Schering-Plough Corp. and a 31 percent advance by King Pharmaceuticals Inc. The eight largest U.S. drugmakers beat first-quarter earnings estimates this month and half raised their forecasts, a trend analysts say may continue through 2007.


Read more at Bloomberg Stocks News

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