In recent earlier posts, I addressed the 3Q 2011 earnings of US Big Health Insurance, US Big Pharma, and US Big Hospital. In all fairness, the Deficit Reduction Super-Committee should be bending the US health care cost curve further, and by quite a bit further, by addressing the out-sized profits which each of these health care industries have been blessed with.
In this post, I am addressing the remainder of the US Health Care Industry. Altogether, there are 29 of these Health Care Corps in Other Health Care sub-sectors, with earnings of at least $100 mil each in either the 3Q 2011 or 3Q 2010, which have already released their September quarter 2011 earnings.
These 29 US Other Health Care Corps registered a Total Pretax Earnings increase of only 4% in the 3Q 2011 over the prior year's quarter.
Here's how the US Other Health Care Corp Sector earnings growth of 4% in the 3Q 2011 stacks up with US Big Oil and US Big Financial.
3Q 2011 Pretax Earnings Growth over 3Q 2010:
.....29 US Big Other Health Care Corps.....................4%
......4 US Largest Credit Card Corps.......................23%
......7 US Largest Financial Corps..........................25%
.....21 US Next Largest National/Regional Banks...38%
......6 US Largest Oil Corps....................................57%
......7 US Next Largest Oil Corps..........................107%
I don't think it is good for the US economy for its extremely high quality, critical to the country Other Health Care Corps 3Q 2011 earnings growth to trail that of both the US Big Oil sector and the US Big Financial sector by such an incredibly wide gap. I think this gives a good insight into why there is such a huge wealth gap between the 1%ers and the 99% rest of the country, the Occupy Movement's major beef.
The overall US economy and US job creation won't improve dramatically until this earnings growth gap between both US Big Oil and US Big Financial vs. the rest of the US business sectors, including all of small business, is substantially closed.
Below here are these 3Q 2011 Pretax Earnings (PTI), along with a comparison with the prior year’s 3Q 2010 amounts, for these 29 Big US Other Health Care Corps, sorted by Sub-Sector.
.......................................................................Increase
............................................PTI.......PTI.......(Decrease)
.............................................3Q.........3Q..................
...........................................2011......2010....Amount....%
.............................................(millions of dollars)
Retail Drug and Proprietary Stores
CVS Caremark 1,429 1,341 88 7%
Walgreens(1) 817 728 89 12%
Medco Health Solutions 589 613 (24) -4%
Express Scripts 517 488 29 6%
Total all 4 3,352 3,170 182 6%
Biological Products
Amgen(2) 1,234 1,434 (200) -14%
Gilead Sciences 975 961 14 1%
Biogen IDEC(3) 481 392 89 23%
Life Technologies 120 128 (8) -6%
Total all 4 2,810 2,915 (105) -4%
Surgical & Medical Instruments
Baxter(4) 806 753 53 7%
Stryker 431 462 (31) -7%
Becton Dickinson 419 414 5 1%
CR Bard 182 183 (1) -1%
Boston Scientific 158 119 39 33%
Covidien(5)
Total all 5 1,996 1,931 65 3%
ElectroMedical Apparatus
Medtronic 1,022 1,040 (18) -2%
St Jude Medical 290 288 2 1%
Varian Medical Systems 160 149 11 7%
Total all 3 1,472 1,477 (5) 0%
Drug Wholesalers
McKesson(6) 538 376 162 43%
Cardinal Health(7) 385 349 36 10%
Amerisource Bergen 227 228 (1) 0%
Herbalife Ltd 151 99 52 53%
Total all 4 1,301 1,052 249 24%
Orthopedic Prosthetic Appliances
Zimmer Holdings 255 257 (2) -1%
Intuitive Surgical 181 137 44 32%
Total all 2 436 394 42 11%
Medical Research
Quest Diagnostics 283 311 (28) -9%
Lab Corp America 220 217 3 1%
Total all 2 503 528 (25) -5%
Misc Health Care
Henry Schein 141 133 8 6%
Weight Watchers 124 72 52 72%
Kinetic Concepts 124 101 23 23%
Cerner 123 94 29 31%
Waters Corp 122 101 21 21%
Total all 5 634 501 133 27%
Total all 29 12,504 11,968 536 4%
(1) Walgreen's 2011 PTI excludes gain on sale of business.
(2) Amgen 2011 PTI excludes huge legal charge.
(3) Biogen IDEC 2010 PTI excludes large In-process R&D charge.
(4) Baxter 2011 PTI excludes litigation charge. Its 2010 PTI excludes asset impairment charge.
(5) Covidien hasn't released its Sept 2011 quarterly earnings yet.
(6) McKesson 2011 PTI excludes excludes litigation settlement charge.
(7) Cardinal Health 2010 PTI excludes gain on sale of CareFusion investment.
