The Food and Drug Administration's warning system is getting out of control. At some point, a company will get hurt by the agency's rabid warnings -- and take its investors down with it.
Earlier this month, the agency warned that Johnson & Johnson's
Then yesterday, the agency slapped a warning about liver toxicity on Roche's prescription weight-loss drug, Xenocal, and its over-the-counter little brother, Alli, sold by GlaxoSmithKline
In both instances, the warnings aren't likely to cost the companies that much money. But how long will it be until the agency steps over the line from cheaply absurd to costly absurd? Maybe it already has: The agency did turn down Glaxo and XenoPort's
The wonkiness of the FDA's actions makes it hard for investors to figure out what the agency will do. Investors in Novo Nordisk
Obviously, the agency has to do its job and make sure unsafe drugs stay off the market. But this Fool would appreciate it if the FDA would spend more time getting drugs approved, and less time worrying about idiots who swallow topical medications and rare side effects that might not even be real.
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