After a panicked Questcor (NASDAQ:QCOR) sell-off on Friday, the stock has stabilized. What was the cause for alarm? It turns out that Questcor's champion drug, Acthar -- which has an orphan designation from the Food and Drug Administration for the treatment of infantile spasms and is the major money-maker for Questcor -- may have a major new generic competitor from abroad poised to challenge its position. And the competition is a lot cheaper. Motley Fool health care bureau chief Brenton Flynn takes us through what this may mean for the company, why the alarm over this may all be just a storm in a teacup, and what to keep your eye on going forward.

Brenton Flynn has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.