Short sellers eye Teva and Mylan as U.S. generics market troubles persist, analyst says

How bad is the generics market in the U.S. these days? Reports from some players are that it continues to be tough, but the picture will get a lot clearer when generics leader Teva reports Thursday, followed by Mylan next week. Indications are the short sellers are tuned in. Novartis provided an inkling of how competitive the U.S. generics remains when it reported last month that sales at its Sandoz generics unit were down 4%. Bernstein analyst Ronny Gal told investors in a note today that he has gotten some short seller calls about Mylan and Teva and “much of the short thesis” is based on Sandoz’ difficulties, as well as results from India’s Dr. Reddy’s, which last week talked about pricing in the U.S. being down 10% to 20% in the quarter.