The seemingly incessant reports about the pharmaceutical industry are starting to hurt their bottom lines, according to this article in the New York Times:
- "A lot of the demand that the industry has created over the years has been through promotion, and for that promotion to be effective, there has to be trust," said Richard Evans, an analyst covering drug stocks at Sanford C. Bernstein and Company. "That trust has been lost."...
The major drug makers remain highly profitable. But at some, including Pfizer and Merck, the largest and third-largest American companies in terms of revenue, sales are stagnant and profits are falling, leading to layoffs and - for the first time in years - cuts in research budgets.
And when budget crunches come, I'd expect to see CME dollars start to dwindle, too. Hope I'm wrong.