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
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
