Generic Drug Sales Strive Despite Recession
Despite the ongoing recession, generic drug makers like Teva Pharmaceutical and Watson Pharmaceutical have been outperforming in the broader market. CEOs William Marth and Paul Bisaro both expect to see further growth.
“When the economic times are good, our business is good,” Marth told CNBC. “And when economic times are bad, our business is better.”
(Watch the accompanying video for the full interview with Teva's CEO William Marth...)
“On a macro level, I think people will be turning to generic drugs more to really help them deal with high cost of health care,” said Bisaro. “And as people face challenges with their own health care costs, generic drugs will play a bigger part.”
Watson’s shares have risen over 40 percent in the past 3 months.
“We’re projecting a growth of about 10 percent over year in our earnings from ‘08 to ’09,” said Bisaro.
Both Teva and Watson said they will continue acquiring in the coming years.
(Watch the accompanying video for the full interview with Watson's CEO Paul Bisaro...)
“We’re going to be an acquisitive company, not one that is acquired,” said Bisaro.
Meanwhile, Merck on Monday is expected to fight efforts by Teva to introduce a copycat version of its biggest product, $4 billion-a-year asthma drug Singulair.
Marth responded that Teva’s place is to challenge patents to bring access to affordable medication.
- Get Real-Time Quotes for Teva and Watson