Teva Pharmaceutical Industries Ltd.  (TEVA) - Get Report stock tumbled Friday afternoon as Wall Street came down hard on the company. The stock closed at $20.60.

Credit Suisse analyst Vamil Divan downgraded the Israeli pharmaceutical company to "neutral" from "outperform."

Teva has had "three strikes," Divan wrote, after missing second-quarter expectations in earnings reported Thursday. The company lowered its full-year guidance and slashed its dividend, too.

Divan said there are no signs of stabilization for U.S. generic drug price erosion and increased competition doesn't look to be slowing down any time soon.

  • Allergan Posts Better-Than-Expected Second Quarter Earnings

Divan slashed his price target for Teva to $25 from $39, suggesting Teva stock could fall another 16% from its Friday morning price of $21.13 per share. Teva stock has dipped over 40% since the start of the year.

The Tel Aviv-based generics maker cratered Thursday after cutting its full-year profit and slashing its dividend 75% owing to weaker U.S. markets and the ongoing political turmoil in Venezuela.

For the quarter ending in June 2017, Teva posted a non-GAAP earnings per share of $1.02 per share and booked revenue of $5.7 billion, the company said. Analysts had forecast, on average adjusted EPS of $1.06 on revenue of $5.72 billion.

Meanwhile, other analysts also came down hard on the company.

Oppenheimer analyst Derek Archila downgraded Teva to "perform" from "outperform" as the company's stock tanked.

"We do not view Teva as a growth story in the near-to-medium term and continued focus on cost cutting/divestments are required to ensure it meets its debt obligations," wrote Archila in a note Thursday.

Others with exposure to the generics industry were also down including Impax Laboratories Inc. (IPXL)  declined about 5% on Thursday and continued to fall Friday.  Lannett Co. (LCI) - Get Report  was lower by 6% Thursday and was unchanged Friday at $17.25 per share.

Amerisource Bergen Corp.  (ABC) - Get Report  stock slid over 10% to $81.48 after the company joined Teva in reporting lackluster revenue last quarter brought down by generic drug price deflation. Amerisource was down another 1.5% Friday to $80.48 apiece. 

More of What's Trending on TheStreet: