Foreign exchange and Big Pharma; "ForEx headwinds will likely reverse in 2009"

Large-capital pharmaceutical companies, like many enterprises with  significant international operations, saw financial results in 2008  affected by foreign currency translation, say analysts at Zachs  Investment Research.

Through the first half of 2008 the US dollar experienced a significant  weakening versus the euro, falling almost 7% through the end of the  second quarter. In mid-July the currency reached its lowest level  ($1.604) versus the euro since the latter was introduced in 1999.

However, around the beginning of August, the trend started to reverse  as the hardships affecting the American economy began infecting  economies throughout the rest of the world. The result was the US dollar  strengthening by over 13% in the second half of the year, with the  majority of those gains beginning late in the third quarter.