Teva Shares Are Taking a Beating and Dragging Down the Generic Drugmakers
Teva slashed its dividend and lowered guidance.

Teva Pharmaceutical Industries Ltd.  (TEVA) stock took a beating Thursday, sinking over 20% midday after the company cut its full-year profit guidance and slashed its dividend 75%.

Teva said weak U.S. markets and the ongoing political turmoil in Venezuela weighed on the company's second quarter performance. Forecasted per-share earnings for the year were lowered to between $4.30 and $4.50 from between $4.90 and $5.30.

Stock of Teva's industry peers were in the green on the news of the Israeli company's poor performance.

Others with exposure to the generics industry were also down. Impax Laboratories Inc. (IPXL) , was down 5.7% or $1.02 per share and Lannett Co. (LCI) was lower by 6.1% or $1.15 per share to $17.60.

Amerisource Bergen Corp (ABC) 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. 

Momenta Pharmaceuticals Inc. (MNTA)  was up 0.31% to $16.05.

Takeover candidates Impax Laboratories, Lannett and Momenta have all been identified as potential take-out targets by TheStreet as the industry continues to feel pressure, especially in the face of a changing political landscape for healthcare and drug regulation.

Shares of larger companies involved in generics such as Novartis AG (NVS)  , Sanofi SA  (SNY)  and AstraZeneca plc  (AZN)  were relatively unchanged.

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