The FTSE 100 pharma company, Shire, says the US Food and Drug Administration has approved a rival's application to make a generic version of an attention deficit and hyperactivity disorder (ADHD) drug.
Actavis has been given the all clear to manufacture a generic form of Adderall XR.
Shire already makes the drug so the suspicion will be that revenues may be hit but the firm says it "continues to expect to deliver good full-year 2012 earnings growth".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Today's update adds though that Shire recognises "there will be multiple dynamics affecting the overall market following the approval of the Actavis generic".
In other words, the FDA's decision could prove problematic.
BS
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
