Pfizer (PFE), the once mighty stock that couldn’t lose, hit a 10-year low yesterday. Expiring patents and the generic drug fights that follow are weighing on the stock. Lawsuit-besieged Merck’s (MRK) not doing much better.
If the US wants to restore its dominance of this industry, it will likely have to lighten some of the regulatory and legal hurdles these companies face. Otherwise, drug development, too, is headed for China (Chart from CrossingWallStreet):