logo-loader
viewMylan Inc.

Mylan and Teva decline as report says generic-drug companies face probe of alleged price fixing

The alleged victims are health-care consumers and taxpayers, who pay for overcharges on common antibiotics, blood-pressure medication, arthritis treatments and anxiety pills

Drug pills and tablets
Generic-drug companies reject price-fixing claims, saying investigators lack evidence of a conspiracy

Shares of generic-drug companies including Teva Pharmaceutical Industries Ltd (TEVA:NYSE) and Mylan NV (MYL:NASDAQ) fell Monday after The Washington Post reported that an antitrust lawsuit brought by states over two drugs has expanded into a probe of alleged price-fixing by at least 16 companies.

The alleged victims, according to the Post, are US health-care consumers and taxpayers, who pay for overcharges on common antibiotics, blood-pressure medications, arthritis treatments and anxiety pills. Hurt are hospitals, pharmacists and health insurers, according to the report.

READ: Delays to Mylan’s Wixela inhaler to hit Consort Medical’s annual profits by £3m

The article cited as an example albuterol, a decades-old asthma drug sold by Canonsburg, Pennsylvania-based Mylan and Sun Pharmaceuticals Ltd of India. The price of a tablet has skyrocketed to more than $4.70 from $0.13, according to the Post.

Manufacturers reject the claims, according to the Post, saying investigators lack evidence of a conspiracy.

Generics account for 90% of US prescriptions but just 23% of costs, according to the Post, citing the Association for Accessible Medicines, a trade group.

The ADRs of Jerusalem-based Teva tumbled 5.9% to $18.27 in Monday’s New York Stock Exchange trading while Mylan declined 2.3% to $29.82 on the Nasdaq. But Pfizer Inc (PFE:NYSE), which has become active in generics, climbed 0.4% to $44.10.



Contact Dennis Fitzgerald at [email protected]

Quick facts: Mylan Inc.

Price: 21.85 USD

NASDAQ:MYL
Market: NASDAQ
Market Cap: $11.28 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: De Grey Mining strikes wide gold mineralisation zone in...

De Grey Mining Ltd (ASX:DEG) executive chairman Simon Lill updates Proactive on new gold mineralisation defined at the Buckle prospect in W.A.’s Pilbara region, after first drilling. RC drilling is now planned to commence in February to determine further resource potential of the exciting new...

2 days, 19 hours ago

2 min read