Shares of Endo International plunged 41 per cent to a seven-year low after the drug maker cut its full-year revenue and profit forecasts, underscoring challenges generic drug makers are facing from rising competition and pricing pressure.

Ireland-based Endo’s shares fell 40.5 per cent at $15.82 in their busiest day in more than two-and-half years yesterday, wiping off more than $2 billion (€1.75 billion) of market value.

Shares of other speciality and generic drug makers such as Teva Pharmaceutical Industries Ltd, Mylan NV and Allergan Plc were down 5-7 per cent.

The US generics industry is under pressure as the regulator ramps up approvals, weighing on revenue across the sector.

Endo cut its full-year revenue forecast on Thursday to $3.87 billion-$4.03 billion from $4.32 billion-$4.52 billion.

– (Reuters)