Stock Commentary - New York week to Mar 2, 2009

NEW YORK: equities had another negative week of trading in the  reporting period to March 2, with the Dow Jones Industrial Index  falling below yet a further psychologically-important mark, the 7,000  level, dropping over 4.2% on the last day to 6,763.29. While the overall  market was in decline, the health care sectors - including drug and  biotech issues - took an even bigger pounding, following President  Barack Obama's unveiling of reform policies that will heavily impact  these industries as well as insurers (see page 14). Importantly, there  was confirmation that copy versions of big-selling, expensive  biotechnology-derived medicines would be helped to come to market. The  proposed budget has provisions calling for re-importation of  prescription drugs and cuts in payments to private insurers and drug  firms. Eli Lilly was quoted as saying that, should this come to pass, it  would lose several hundred million in sales on Zyprexa (olanzapine)  and other products. Lilly was off 14.1% for the week. There were other  significant double-digit declines, with only one of the shares  tracked seeing a rise.