Mayne Pharma shares fall on US price fixing allegations

Desirey Minkoh/AFP/Getty Images

Shares in Mayne Pharma fell hard after the Australian drug company got caught up in allegations in the US of price fixing of generic drugs.

A short time ago, the shares were down 8% to $1.312.

Mayne Pharma is one of several generic drug companies to receive a subpoena from the Antitrust Division of the US Department of Justice information.

The investigation relating to Mayne Pharma is focused on doxycycline, an antibiotic, and potassium chloride.

However, multiple US states have now started legal proceedings in the US District Court of Connecticut against a number of generic drug companies including Mayne Pharma.

The US states allege that Mayne Pharma engaged in anti-competitive conduct.

“After reviewing the complaint, the board (of directors) continues to believe the investigations and the legal proceedings will not have a material impact on its future earnings,” says Mayne Pharma.

“However, as previously stated no assurance can be given as to the timing or outcome of the investigation or legal proceedings.”

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