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Generic Manufacturers Try To Up Their Game As US Pressure Persists

Executive Summary

With US generic drug price erosion running at double digits, 2017 is expected to be a challenging year for the generic drug sector. Manufacturers are looking increasingly to complex generics, injectables and biosimilars as an offset, but it's unclear if wins in those areas will be enough to bridge the growth divide.

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Novartis's Sandoz unit is the first of the big generics players to report second quarter financials, and its outlook for the US market remains pessimistic.

Generic Drug Sector Struggles Even As The Need For Cheaper Drugs Grows

Lower prices for generic drugs in the US are continuing to drag on revenues of drug makers like Teva, Sandoz, Mylan and Endo. Industry leaders say the US market is stabilizing, but price erosion and other negative factors impacted second quarter financials across the sector. Teva is attempting a turnaround and Mylan is exploring strategic alternatives.

Generic Drug Sector Struggles Even As The Need For Cheaper Drugs Grows

Lower prices for generic drugs in the US are continuing to drag on revenues of drug makers like Teva, Sandoz, Mylan and Endo. Industry leaders say the US market is stabilizing, but price erosion and other negative factors impacted second quarter financials across the sector. Teva is attempting a turnaround and Mylan is exploring strategic alternatives.

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