Editor’s note: James Veltrop’s clients do not include Ranbaxy Labs.

When Teva Pharmaceuticals Industries Ltd. secured the rights to market a generic version of the blockbuster drug Neurontin in 2004, it looked like the company was in for a period of robust good health. After all, the brand-name version of the drug, used both to treat epilepsy and as a pain reliever, had generated more than $2 billion in sales for Pfizer Inc. in 2003. The generic version (gabapentin) was supposed to bring in hundreds of millions for Teva.

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