Generic drugmakers Teva, Mylan, and more see downgrade by Morningstar

19 April 2017

Independent investment research firm Morningstar has published its latest Healthcare Observer, “We’ve Downgraded Generic Manufacturer Moats, but Fear Creates Opportunity.”

The generic drug industry has recently faced challenges due to greater-than-expected pricing pressure, unfortunate capital-allocation decisions, increasing financial leverage, and concerns about collusion charges. Morningstar equity analysts have downgraded the Morningstar Economic Moat Rating for six generic drug firms to ‘None’ as the industry remains a low barrier-to-entry market and faces increasing competition.

Key highlights of the Observer include:

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