Teva shares plummet 18% on cheaper generic drug prices, pulling rivals lower

Lower prices for generic drugs, though a boon for consumers, have been challenging drugmakers and other companies in the pharmaceutical supply chain—a trend that isn’t expected to go away soon.

Generic drugmaker Teva Pharmaceutical Industries Ltd. was the latest casualty this earnings season. Shares plunged 18% in extremely heavy morning trade for the NYSE-listed stock after the company TEVA, -20.38% missed profit expectations and reported generics revenue that was below expectations.

A full 47.4 million of shares had changed hands by mid-morning, compared with an average daily volume of 7.8 million.

Shares of Teva rivals also fell.

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