Generic drugmakers and drug distributors’ shares sunk in Thursday trade after Teva Pharmaceutical Industries Ltd. reported worse price erosion for generic drugs in the latest quarter and lowered its 2017 guidance. Teva shares plummeted nearly 18%, while fellow generic drugmakers Perrigo Co. and Teligent Inc. fell 1.3% and 4.2% respectively. The VanEck Vectors Generic Drugs ETF fell 0.3%. Shares of drug distributors, which are also affected by cheaper generic drugs, also dropped: McKesson Corp. shares fell 1.7%, AmerisourceBergen Corp. dropped 3.6% and Cardinal Health Inc. dropped 1.8%. Thursday marks the second occasion that Teva earnings have sparked a selloff for generic drugmakers and the pharmaceutical supply chain. Teva shares have plummeted 62.8% over the last three months, compared with a 4.2% rise in the S&P 500 .
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