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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.
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Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Motley Fool newsletter services have recommended buying shares of GlaxoSmithKline. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.