Healthcare market fears crisis

As William Weldon a few weeks ago, before investors a glimpse into the future dared, he had to announce almost monstrous. Round was 76 years his company has grown, year after year, in war and peace. Always on, always up it went up to $ 63.7 billion sales. But in 2009, for the first time since a three-quarter century, it should be otherwise. Johnson & Johnson, one of the world’s largest healthcare companies, is shrinking – because of the crisis.

Since the autumn it is downhill. In the fourth quarter was primarily the recession, the revenue of the Group rose by almost five percent to burglarize. “We see signs that consumers and patients are more economical,” says Weldon, only eight companies since 1886 is boss. “Many healthcare markets are under pressure economically.”

It is the end of old certainties. The health sector was previously considered immune. Even in the last major crisis after the bursting of the New Economy bubble, when unemployment rose in all sectors of the economy, created new jobs. People would always ill, and their treatment will pay most of the state, it was always.

Gloomy forecasts
Gone. The century crisis is also this supposedly stable part of the national economy. Among the violent shock waves. In the Americas, and almost all EU countries, the economy shrinks. The forecasts are grim. Worldwide stock markets are on the descent. Banks are reluctant to forgive loans. Automotive industry, engineering, and commerce are already taken – is now the waves reach the health care market, especially abroad.

For the USA, the most important healthcare markets in the world, expects the rating agency Moody’s, with declining revenues and profits for hospitals, insurers and medical technology manufacturers. In November, Moody’s considered the outlook for the next 12 to 18 months from “stable” to “negative” down.

“The main reason is the expected impact of a long economic downturn,” it says in a report. It was the first time that the rating agency a negative rating for all major sectors of the industry delivered. “The Hypothetical previously is now a reality,” said Lisa Goldstein, Senior Vice President at Moody’s.

Sichere industry crisis?
“Typically, the healthcare industry is resistant to downturns, but this crisis is historic,” says William Hawkins, chief executive of Medtronic, the world’s largest pure medical technology manufacturer. “Our business is affected.” Most recently, the group caused the crisis, growth forecasts have to be cut.

It is still good because Medtronic, with $ 3 billion profit on $ 13.5 billion revenue the 2008th “Vital pacemaker or patients get stents today,” says Hawkins. The core divisions of the Group reached the crisis.

Long, not everything is as black as in other industries. While the stock exchange index Dow Jones Global, the world’s 1800 listed companies depicted, since early 2008 by half absackte broke the Healthcare index by only about 30 percent. Fresenius, Germany’s largest healthcare group with hospital, pharmaceutical and medical technology sectors, announces record sales and profits.

“The more an industry is removed from the financial market, makes the less noticeable the crisis,” says Hartmut Schauerte, state secretary in the German Economics Ministry. The coming of the health economy. “Whom should the banks lend money because if not you?”, He recently pharmaceutical managers and pharmacists to.