- U.S. Senator Bernie Sanders (I-VT) and Representative Elijah Cummings (D-MD - 7th district) have launched an investigation targeting Teva Pharmaceutical Industries (TEVA -8%), Mylan N.V. (MYL -7.8%) and Heritage Pharmaceuticals for allegedly obstructing a Congressional inquiry into their pricing practices for generic drugs.
- The two lawmakers say that the companies have yet to produce any of the documents requested in 2014 despite repeated prompting.
- Apparently, one company representative emailed that the "consensus at this point is that the responses will be polite f-u letters."
- In May, 44 states filed suit against the three firms, and others, accusing them of colluding to maintain high generic drug prices. Heritage has already agreed to pay more than $7M to settle criminal and civil price-fixing allegations.
- Selected generic drug-related tickers (not necessarily connected to the probe): Perrigo (PRGO -3%), Akorn (AKRX -4.6%), Lannett Company (LCI -6.6%), ANI Pharmaceuticals (ANIP -5.1%), Mallinckrodt (MNK -4%), Dr. Reddy's Laboratories (RDY -1.7%), Amneal Pharmaceuticals (AMRX -8.4%), Endo International (ENDP -6.3%)