Consider, last week the FDA/CDER proposed a speedier process for considering approval of generics.
And lots and lots of big named brand drugs are headed to the ends of their patents. According to the Wall Street Journal, $30 billion worth of drugs are about to go off patent.
At the same time, pharmaceutical prices are reported to be about to rise another 12%. by the end of the year, which will make generics even more attractive.
In short, the overall environment for generic drugs has warmed up quite a bit lately. But you couldn’t tell this by their stock prices.
I’m not a stock analyst by any means, but I was curious to see if this increasingly rosy outlook for generics was having an impact on the companies that make them. So I went to the remarkable Google Finance page and compared some of the bigs in the industry – Barr, Mylan, Teva and Watson to see if their stock prices had increased as a result. But instead, every one of the big ones suffered declines in their stock prices since the beginning of the year, save for one – Mylan which was up almost 5%. I realize there are complex factors at work, but thought it interesting nonetheless.