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Drug Makers Biting the Bullet
JOHANNESBURG, SOUTH AFRICA--(Marketwire - April 27, 2010) - www.rothmanresearch.com - It has been over a month now that the healthcare overhaul has been passed as law, but its ripples are still being felt throughout the healthcare industry. It is a fair statement to say that we will hear from this law quite often in the next few years. Last week, we have seen investors react cautiously (sending shares in the red) to the earnings results of some major drug makers as these companies disclosed that they are expecting a reduction in their revenue for the short term as a result of the government rebate under this new legislation. Johnson and Johnson (NYSE: JNJ) which recently posted a 29% surge in its first quarter profit, reported that the rebates under the healthcare law will impact its 2010 revenue negatively, cutting it down by as much as $500 million and s
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