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Pro Analysis

Sell Teva Pharmaceutical due to increasing generic drugs competition: Credit Suisse

An employee collects newly-manufactured pills at Teva Pharmaceutical Industries.
Adam Reynolds | Bloomberg | Getty Images
An employee collects newly-manufactured pills at Teva Pharmaceutical Industries.

Credit Suisse said there is no turnaround in sight for generic drugs maker Teva Pharmaceutical.

The firm lowered its rating on the company's stock to underperform from neutral Wednesday, citing industry-wide pricing pressure for generic drugs.

Teva is"the least compelling opportunity in our sector for the next several months as recovery from challenges of this extent typically take time," analyst Vamil Divan wrote in a note to clients. "For the core US generics business, we believe the issues around generic price erosion and increased competition will continue for some time."