Stock Scan October: Generics Pull Pharma Down
Pharma stocks suffered in October, particularly in North America. Across the globe, stock prices among the biggest pharmaceutical companies were down an average of 2% on the month, despite general market revivals in Asia. The generics sector was particularly badly hit but there were several major setbacks for branded pharma companies, too.
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Big pharma stocks lost value overall in the fourth quarter of 2017 despite good performances from Asian companies and Kåre Schultz taking over at Teva.
Generic drug producers endured very mixed fortunes on the world's stock markets, with firms ending November at opposite ends of Scrip's Stock Scan monthly league table.
Multi-billion dollar gaps exist between what investors think a company is worth one day and what they think the next. A Scrip analysis shows that these information gaps between big pharma and their shareholders are very common and are often bridged only by the mandatory quarterly reporting from companies. While unbalanced optimism or pessimism from investors might account for some of the chasm in understanding, an absence of interim guidance from companies is also a factor.