The calamity engulfing generic-drug stocks has many causes, but they are all made worse by one simple malady: too much debt. Solving the problem is much tougher than identifying itYears of weak performance for these companies has lately broken into a share-price crisis. In the past month alone, shares of Teva Pharmaceutical Industries and Mylan have plunged by about 40%. Smaller rivals, such as Mallinckrodt and Lannett haven’t fared any better.

Source: Wall Street Journal June 02, 2019 14:03 UTC