Healthcare distributors stocks have outperformed S&P 500 by about 400 basis points.
The distribution companies have higher capitalization, better cash flows and historical growth rates. The healthcare IT stocks on other hand are following the broader market.
Analysts at Jefferies, who pointed out earlier that merger of Eclipsys ECLP with Allscripts MDRX made perfect sense, now point that the shareholders are not impressed. The companies would have to convince the market on rationality of the merger.
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