Wells Fargo Thinks Its Too Early To Bottom Fish Mylan (MYL) and TEVA (TEVA)

Wells Fargo analyst David Maris took a detailed look at the generic drug market landscape with several generic drug company stocks are at or near 52 week or multi-year lows and came away with the conclusion that we are not at the bottom. April Mylan (NASDAQ: MYL) IQVIA U.S. generic sales were down -36%, an acceleration of the decline of -31% in March, the largest YoY monthly percentage decrease in U.S. generic sales as reported. For Teva Pharma (NYSE: TEVA) April IQVIA data was down -19%, an even greater acceleration of the declines of -10% to -13% in January, February, and March.

The analyst stated "At the current valuation for covered companies Teva and Mylan, the shares seem to us to be reflecting an aggressively negative outlook given the current earnings multiples, and setting aside the worst case outcomes in the opioid and price fixing cases, these may be at or nearing attractive valuations. However, for now, we remain on the sidelines".

For an analyst ratings summary and ratings history on Mylan click here. For more ratings news on Mylan click here.

Shares of Mylan closed at $18.10 yesterday.

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