Stockwatch: Coronavirus Impacts At Generic Pharmaceuticals – A Mixed Bag
Supply Chains Seem Unaffected, But Volume Challenges Remain
Following Mylan’s first-quarter 2020 earnings announcement, all the biggest generic pharmaceutical companies have now reported. Concerns about supply chain disruptions in March have proven to have been overblown and guidance has largely been reaffirmed. So, are generics immune from coronavirus?
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Mylan has delayed a major restructuring program ahead of its planned merger with Pfizer’s Upjohn unit due to the impact of the COVID-19 pandemic, which at the same time brought tailwinds for the firm’s first-quarter results.
Teva has expanded on plans to improve its profit margins after emerging from a years-long restructuring program that has cut its cost base by over $3bn. The Israeli company reported first-quarter sales ahead by 5% to $4.36bn, seeing a “mixed bag” effect from the COVID-19 pandemic as well as positive results from new launches including two US biosimilars.
As generalist investors continue to push higher the stock prices of biotech companies that announce the most tenuous of coronavirus developments, the track record of biotech companies developing even vaccines for which the antigen is proven to be safe and efficacious remains poor.