Negative publicity is something most companies should avoid. But if you are a pharmaceutical company and the negative publicity is about one of your drugs, well, that can be a problem.
Patients are continuing to pressure the agency to investigate Teva's version, Budeprion XL, after continued reports of side effects like nausea, anxiety, or headaches. An independent lab previously found that it released 34% of its active ingredients after two hours, compared with just 8% for Glaxo's Wellbutrin XL. That doesn't sound very extended-release to me.
For investors in Biovail, any new investigation into Budeprion XL -- or even pulling it -- won't help much. Generic competition from Teva, Watson Pharmaceuticals
If the investigation into Budeprion XL is extended, other companies, such as Alkermes
Getting back to Teva, any loss of Budeprion XL wouldn't be a major blow to it, as far as revenue goes. But the extended investigation could result in extended bad press, which no company wants. When dealing with public health, companies, and investors in those companies, need a clean bill of health.
Let us know what you think in the Motley Fool CAPS database. Make an outperform or underperform call on these companies: Post a pitch about whether you think this will be an extended benefit or a disaster for Teva. It's free. It's fun. And, it's Foolish.
Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Glaxo is a selection of the Income Investor newsletter. The Fool's disclosure policy can outlast the other guys'.