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Canwest News Service
Shoppers Drug Mart Corp. (SC/TSX) investors may have to wait longer than anticipated to find out what changes the Ontario Ministry of Health will recommend as part of a drug-reform process currently being undertaken.
Keith Howlett of Desjardins Securities said the mayhem created by the eHealth scandal continues to sidetrack the Ministry of Health, as last Friday, Ron Sapsford, the deputy health minister, resigned. In addition to overseeing the province's efforts to create electronic health records, Mr. Sapsford has also been supervising the drug-reform process,
"Our speculation is that the turmoil and disruption within the Ministry of Health may delay the drug-reform process beyond the end of January 2010," said Keith Howlett, Desjardins Securities analyst. "This is negative in that the unresolved issue of reform will overhang Shoppers shares. It is not clear to us what the impact of all of the above will be on the substantive agenda for reform."
Mr. Howlett has a "hold" rating and $51 price target on the stock.
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SHOPPERS DRUG MART CORP.
SC/TSX, $43.52, down 5ยข
