Why Teva Pharmaceutical Industries Stock Fell for a Second Straight Day

Shares of Teva Pharmaceutical Industries (NYSE: TEVA) are down 9.8% as 1:15 p.m. EDT after dropping by an even greater amount yesterday following disappointing second-quarter results and lowered guidance. Today's sinking stock price seems to be due to multiple analyst downgrades because of those results.

Analysts' reports -- a day late and a dollar short -- shouldn't necessarily trip shares up, but maybe investors are digesting yesterday's release and deciding that they're worried about the long-term outlook for the generic drug industry.

The FDA has increased the speed that it's approving generic drugs, which is good for companies to get new drugs on the market, but also results in increased competition, allowing buyers to negotiate lower prices. Drug distributor AmerisourceBergen noted yesterday that it expects generic drug prices to decline by 7% to 9% during its fiscal 2017.

Source: Fool.com