Drug stocks advanced early Wednesday but shares of Teva Pharmaceutical Industries declined on concerns that its soon-to-be launched generic version of Merck's Zocor may end up being more expensive for consumers than the original product.
The Amex Pharmaceutical Index crept up 0.3% to 325.68 points and the Amex Biotechnology Index edged up 0.5% to 635.96.

Teva (NASDAQ TEVA ) slid 9% to $32.23, following reports that Merck was negotiating with major health insurers to set Zocor's co-payment below that of Teva's planned generic version of the product. Teva is the first drugmaker to receive regulatory approval to put out a generic version of Zocor. Zocor is slated to lose its patent protection later this month. Merck has already signed a deal to allow Indian generic drugmaker Dr. Reddy's Laboratories (STOCK SYMBOL RDY) to put out an "authorized" generic version of Zocor.
U.S.-traded shares of Dr. Reddy's jumped 5% to $28.70