Thursday, August 12, 2010

CareFusion Looks To Pump Up Returns

Even though many sectors of the economy have shown some signs of life in recent quarters, a real recovery has yet to take hold in the healthcare space. Hospitals saw their capital funds decimated by investment losses, insurance companies have fought hard to minimize their medical loss ratios, and would-be patients have stayed at home because they either lost health insurance, could not afford the co-pays or did not want to risk taking time off work for recuperation. 

All of this is bad for a company like CareFusion (NYSE:CFN). While it is true that CareFusion does not sell multi-million dollar equipment like Intuitive Surgical (Nasdaq:ISRG) or Varian (NYSE:VAR), drug pumps are not exactly free and the company - along with peers Baxter (NYSE:BAX) and Hospira (NYSE:HSP) - have suffered from sluggish procedure volume. Selling a lot of relatively low-priced disposables and instruments is a great business, but it is not an invulnerable one. 



For the full article, please click the link:
http://stocks.investopedia.com/stock-analysis/2010/CareFusion-Looks-To-Pump-Up-Returns-CFN-BAX-HSP-ISRG-VAR-EW-CAH0812.aspx

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