Friday, June 26, 2009

Shoppers Drug Mart may get lift from prescription legislation

From the Financial Post:
Could changes to the dispensing powers of pharmacists be a boon for Shoppers Drug Mart Ltd.?

Analyst Robert Gibson of Octagon Capital notes pending or already enacted legislation across Canada will lead to changes in pay for pharmacists by their home provinces, although there will not be much clarity on the issue until 2010.

“We believe that the fee the pharmacist will get for extending, adapting, or adjusting a prescription, for example, will be less than what doctors are charging for a similar service,” Mr. Gibson wrote in a note to clients, hiking his target price on the stock to $57 from $49.25. He maintained his "buy" rating on the shares. “Thus, it is in the provincial governments’ interest to proceed.” ...more

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