Recession-Proof? The Beauty of Big Pharma Is in the Eye of the Beholder

The most negative view of the economic outlook in 15 years is leading more and more US consumers to change their spending and saving behavior, according to the latest survey from the Pew Research Center for People & the Press.

Americans continue to render extremely bleak assessments of economic conditions, both with respect to the national economy and their own financial situations, Pew says. “Fully 92% of the public rates the national economy as only fair or poor, and a substantial majority (61%) judges their personal finances that way. Both measures are among the most negative recorded in Pew Research Center surveys over the past 15 years.”

The public’s bearish economic outlook is spurring ever growing numbers of consumers to say they are cutting back on purchases or reconsidering their saving or retirement decisions, Pew says. “As a result of what’s been happening with the economy recently, 60% of Americans say they are changing the way their money is saved or invested, up from just 48% two months ago; 32% say they have adjusted their retirement plans. Substantial minorities also say they are either delaying or shelving plans to make major household purchases (45%) or buy a home or make major improvements (44%). And fully 73% say that they plan to cut back on holiday gifts this year.”

The survey suggests that the psychological impact of bad times, rather than an actual decline in people’s financial conditions, is the principal driver of these cutbacks and reconsiderations.

Nearly six-in-ten (59%) of those who say they are cutting back or delaying purchases report they are doing so because they worry things might get worse. Just 28% say they are cutting back because their financial situation has gotten worse.

Worry is the overwhelming factor in spending cutbacks being made by more affluent consumers: 72% of those with family incomes of $75,000 or more per year cite concerns about what might happen as a reason for their intended cutbacks. Among less affluent people the fear factor still predominates, but many more people cite an actual worsening of their situation as a reason for cutbacks.

Comments

[Dan Jacome:]

what does this have to do with Pharma? Confused. anyways, the # ABC just printed tells that Rx adherence hasnt really fallen off a cliff bc of the macro

2008 Dec 12 02:21 PM

[Jake2:]

A non-article. Reader, pass by.

2008 Dec 12 02:48 PM

[freaky123:]

Somewhere there is an article analyzing the prospects of large pharmaceutical companies that bears the title "Worried Consumers Cut Back Discretionary Spending" I am going to go look for it now.


On Dec 12 02:21 PM Dan Jacome wrote:

> what does this have to do with Pharma? Confused. anyways, the # ABC
> just printed tells that Rx adherence hasnt really fallen off a cliff
> bc of the macro

2008 Dec 15 12:33 PM

[Victhom:]

Pfizer won't raise it's dividend what a shame....With $12B sell on Lipitor in 2011 PFIZER will need a miracle to keep it....

Pfizer Declares a 32-Cent First-Quarter 2009 Dividend
Monday December 15, 2008, 3:45 pm EST
Yahoo! Buzz Print Related:Pfizer Inc.
NEW YORK--(BUSINESS WIRE)--The board of directors of Pfizer Inc (NYSE: PFE - News) today declared a 32-cent first-quarter 2009 dividend on the company’s common stock, payable March 3, 2009, to shareholders of record at the close of business on February 6, 2009.

Related Quotes
Symbol Price Change
PFE 16.63 -0.29


{"s" : "pfe","k" : "c10,l10,p20,t10","o" : "","j" : ""} The first-quarter 2009 cash dividend will be the 281th consecutive quarterly dividend paid by Pfizer.


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2008 Dec 15 04:19 PM

[Dan Jacome:]

PFE needs to do a deal, they are lucky they are so big, otherwise theyd be a target for exhibiting such poor use of cash. Stock @ 10 yr low, single digit PE, distressed like div yield, and $26b in cash...they have to pay out a massive div or do deals. AMGN? maybe BIIB maybe? do something!!!! The CEO has a vice grip on the cash and cash cant earn jack returns in this milieu!!!

2008 Dec 18 04:23 PM