SOURCE: Rothman Research

Rothman Research

March 19, 2010 08:49 ET

The Fate Hinges on Healthcare Bill and Drugs Going Off-Patent

So, How Prepared Are Healthcare and Pharmaceuticals Companies?

JOHANNESBURG, SOUTH AFRICA--(Marketwire - March 19, 2010) - - With the Senate and the House of Representatives each bringing to the table their proposal for a healthcare reform bill, the discussion now is principally focus around whether there is a rudimentary right to health care, that is who should have access to health care and under what conditions. Most Democrats are predisposed to back the proposal for a public-government-run health insurance plan, declaring that it would compel premiums to go down and offer alternatives where few opportunities exist. Conversely the majority of Republicans are against the whole reform as proposed by President Obama, saying that the reform if passed would bring the private health insurance industry to its knees.

However, if one scrutinizes both proposals, he will discover some similarities between the Senate and the House of Representatives version of the healthcare bill. There is for starters the suggestion for a tax on cosmetic treatments that could hurt companies such as Allergan Inc (NYSE: AGN). ARYx Therapeutics Inc. (NASDAQ: ARYX) is another such company in the healthcare space that faces stiff challenges in times ahead as the company is failing in to get a commercialization partnership for its mainstream drugs. The company is running out of time and options to capitalize the off-patent drug markets in the coming 1-2 years. A study conducted by leading online research platform could put answers to inquiring minds. Direct & free downloadable reports of the intensive research are available by signing up now at  or

"This is by far the one of the most passionate debate Capitol Hill has seen," commented Mathew Collier, "A lot of ink will flow with this healthcare reform debate... but there will need to be a time for compromise... A lot of healthcare companies will be impacted if the reform is passed, so we just have to wait and see how the market will react as speculations is already making its way through the sector."

Allergan's, well-established leadership positions in ophthalmology and cosmetic drugs and devices has earned the company a wide economic moat. But the company needs desperate breakthrough, despite massive investments in R&D, a mediocre drug pipeline may not be enough to overcome key patent expirations during the next five years. In addition, Botox is not patented and will face competition in the near future. As mentioned above the tax on cosmetic surgery, also known as "botax" is also a major issue, though the company is lobbying hard to remove that.

The stock has returned 1.27 percent year-to-date and 52 percent over a period of 1-year. Register now at to view the full report on this company.

ARYx Therapeutics Inc. is an early-stage bio-pharma firm, which is dedicated to the improvement of the safety profiles associated with deadly drugs. Three of its vital late-stage contestants are inspired by previously promoted cisapride (Propulsid) for gut motility, warfarin, the blood-thinner and amiodarone used for atrial fibrillation.

The company sustained a blow recently after the retail partner for its lead compound ATI-7505, Procter & Gamble PG, broke away from ARYx. Worse, not so good performances by the company's ace products like novel anticoagulant and tecarfarin have jeopardize the company's growth in the recent times.

Meanwhile, delivering yet another blow to the company, expected partners of the company for its antiarrhymia drug budiodarone have now parted their way. The company was a lot dependent on getting hold of a partner to sell the drug in the market in the near term.

The stock has returned -65.45 percent year-to-date and -51.52 percent over a period of 1-year. Sign up today at to access the full report on this company.

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