Generic-Drug Stocks Still Under the Weather

An outbreak of Big Pharma flu has struck the generic-drug industry, causing sickening returns for investors who had been counting on these defensive investments during economic uncertainty.

Shares of most major generic-drugmakers have traded below the S&P 500 for the 12 months ended May 23, and that index was off nearly 10%.

In addition, several generic-drug makers have performed below an index of large-drug companies, and that's a big target to miss. The Amex Pharmaceutical Index is down 19%. ...