The third quarter earnings reporting period starts next week and the usual updates of the state of public and commercial medical progress are now guaranteed to be overshadowed. Companies that report prior to the debt ceiling deadline on the 17th include Johnson & Johnson , Abbott Laboratories, and Baxter International. These companies will all have to deal with questions of how their franchises are being affected by current events. With major pharmaceutical players such as Merck & Co having recently announced both additional layoffs and cutbacks we now face the questions of who is next and what steps CEOs may have to demonstrate performance. This however is not the worst of it.
When capital market confidence deteriorates because of political-gridlock no amount of legislation can undo the damage done. Witness the current debate on whether the tax on products developed and sold by medical device industry leaders like Medtronic Inc. (MDT) should remain or be eliminated. A valid question for policy advocates, but secondary in importance when the confidence of all share owners and ultimately future investors rethink options beyond the single equity. As the shutdown continues, investors in all healthcare segments are likely to re-evaluate their portfolios due to delays in basic agency oversight and other suspended activities.
When capital market confidence deteriorates because of political-gridlock no amount of legislation can undo the damage done. Witness the current debate on whether the tax on products developed and sold by medical device industry leaders like Medtronic Inc. (MDT) should remain or be eliminated. A valid question for policy advocates, but secondary in importance when the confidence of all share owners and ultimately future investors rethink options beyond the single equity. As the shutdown continues, investors in all healthcare segments are likely to re-evaluate their portfolios due to delays in basic agency oversight and other suspended activities.
