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How the U.S. budget movement will press down some Swedish firms - just more pain from the so - called secure markets

Tuesday, 08 January 2013
The U.S. budget deal that came about during the New Year meant bad news for the Swedish pharmaceutical company, Elekta. According to the budget deal, the state reimbursement to clinics that use gamma knife, meaning Elekta Gamma Knife, which is used specifically for the treatment of brain metastases, was dragged down.

This means that Elekta has already felt the biting wind of the U.S. budget negotiations. In the next phase, several Swedish companies stand on the line of fire as the US makes adjustment in a sector that has been a cash come to many companies.

Since last year, we had contemplated on this network to show how Swedish companies will fare if Obama won or loose the elections. Since Obama won those companies that would be more affected have now started turning questioning how their bottom line could be improved especially as Europe is not proving yet to be the better alternative.

Handelsbanken's immediately lowered the recommendation to sell Elekta after the announcement and even pulled down forecasts for the company's profits in the next financial year, according to Swedish business daily Dagens Industri. Elekta's shares had since backed down over 4 per cent on the exchange.

The pharmaceutical giant, Astra Zeneca also face risks in relations to the U.S. budget negotiation. As a pharmaceutical giants with large exposure in the USA, tighter policy guidelines along the Obama line will means that the company would is expected to face more challenges since the Obamacare laws are gradually instituted in line with reforms of the Medicare and Medicaid system.

"The danger for companies that have found it hard to come up with a new patented premium products, such as Astra Zeneca, with a large proportion of older products may be subject to competition and be subject to more price pressure, Johan Unnerus, pharmaceutical analyst of Swedbank, told the paper.

Medical technology company Getinge can also get a setback due to the budget negotiations. For Getinge, the USA is the largest market and Bank of America recently reduced the recommendation of the company's share. The ground for that, it the possible cuts to the health sector according to reports.

However, should the Republican behave responsibly, and accept Obama's infrastructure development program, then some Swedish companies such as Scania and Volvo AB could stand to make some in route gains in the sales of their heavy-duty equipments.
By Scancomark.com Team

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