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# FDA Drug Competition Plan Hurts Investors: Motley Fool
- URL: https://www.fdaweb.com/fda-drug-competition-plan-hurts-investors-motley-fool/
- Published: 2020-06-03T12:00:00.000Z
- Updated: 2026-09-14T16:16:58.000Z
- Author: David McFarland
- Tags: Drugs, #legacy-id-D5146921

The Motley Fool, a financial and investing advice company, says the FDA Drug Competition Action Plan initiative that the agency started in 2017 to make prescription drugs more affordable has worked well for consumers, but at the expense of lower revenue and profits for many companies.

In an online [post](https://www.fool.com/investing/2020/06/03/why-the-fdas-new-initiative-is-bad-news-for-generi.aspx?ref=fdaweb.com), the Fool says the agency is devoting significant resources to expedite approval of “copycat drugs.” Last year, it says, FDA approved a record 1,171 generic drugs, a 21% increase over the previous record year in 2018.

The analysis shows that for generic manufacturers with a significant portion of their revenue coming from the U.S., “the new initiative has done nothing less than wreak havoc on the bottom line.” It cites as an example Lannett, which conducts more than 90% of its business operations in America and sustained a 16.4% revenue decline year-over-year in the last quarter.

According to the article, generic drug companies with healthy international segments are in luck because the FDA initiative does not affect other areas of the world. Thus, Teva and Mylan are seeing their revenue and earnings per share grow, primarily because 52% and 63% of their revenue, respectively, comes from outside North America.