Genzyme
Yesterday, the European Medicines Agency took swift action recommending new patients and those who can't get enough drug start or switch to Shire's
The recommended switch shouldn't have a long-term effect, unlike the government favoring Gilead Sciences'
And prescriptions into next year may be affected because Genzyme has essentially opened the doctor's office door for its competitor. Many doctors would prefer to prescribe Fabrazyme, but now they'll have additional experience with Replagal whether they wanted it or not, which could lead to fewer prescriptions for Fabrazyme well into the future.
Genzyme is working on a new plant to manufacture Fabrazyme, but it won't be approved until the end of next year. Until then, another water issue in Boston, rioting Sox fans, or who knows what else could set off another supply disruption.
With all the troubles Genzyme has had, it's hard to recommend buying shares. You'd be in good company if you do go for the bad-news-buy, but with so many high-quality companies, why gamble on a potential turn around candidate that might have yet another stumble down the road?