The U.S. Justice Dept. could reportedly file charges in its generic-drug pricing probe into companies including Mylan Pharmaceuticals (NSDQ:MYL) and Teva Pharmaceuticals (NYSE:TEVA) by the end of year.
The department is examining whether the generic drug makers colluded on drug pricing, Bloomberg reported yesterday. The news source said that Mylan and Teva have disclosed subpoenas and are cooperating with authorities.
Mylan and Teva shares plunged following the news. Mylan shares closed down -8% yesterday at $33.76 apiece, while Teva dropped nearly -11% to $38.78 per share.
Mylan has been under fire for months following reports that it jacked the price of its EpiPen by 500% since acquiring the epinephrine auto-injector from Merck (NYSE:MRK) in 2007. In early October, the company agreed to pay $465 million to settle claims that it underpaid Medicaid for its EpiPen auto-injector by misclassifying the device as a generic. West Virginia Attorney General Patrick Morrisey yesterday called the settlement “woefully deficient” in a letter to U.S. attorney general Loretta Lynch.
The Securities & Exchange Commission’s enforcement division also launched an investigation into the Canonsburg, Pa.-based company’s history will CMS and investors filed a purported class action suit seeking compensation for damages in October.
In response to the widespread criticism, Mylan agreed to expand its patient assistance program and launch a generic device that would cost $300, half of what a 2-pack of EpiPens costs.