Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of prescription and over-the-counter generic drug producer Hi-Tech Pharmacal
So what: According to reports, Indian drug company Wockhardt today received FDA approval to market fluticasone, a corticosteroid used to treat allergic rhinitis and a generic version of GlaxoSmithKline's
Now what: The great thing about generic companies is that they have a seemingly endless supply of drugs falling off patent. Unfortunately, when you sometimes have multiple companies competing for the same bone, you run into an issue like Hi-Tech has today. It remains to be seen how badly Hi-Tech's revenue stream will be affected by today's FDA ruling, but clearly this isn't good news and I completely understand the move lower. As of now I'm more than happy waiting this one out on the sidelines.
Craving more input? Start by adding Hi-Tech Pharmacal to your free and personalized watchlist so you can keep up on the latest news with the company.