Generic drug prices falling, but are consumers benefiting?

New York

NOT all drug prices are going up. Amid the public fury over the escalating costs of brand-name medications, the prices of generic drugs have been falling, raising fears about the profitability of major generic manufacturers.

Last week, Teva Pharmaceuticals reported that it had missed analysts' earnings estimates in the second quarter and planned to lay off 7,000 workers. Its share price plummeted 24 per cent in one day as investors worried there was no end in sight.