Pharmaceutical maker Mylan (MYL) is the target of yet another set of questions on its pricing practices. This time, though, its controversial autoinjector EpiPen was spared headlines.
Bloomberg and Wall Street Journal reported Thursday that the Department of Justice is investigating several generic drug makers on allegations of pricing collusion, which sent the group's stocks plummeting. The DOJ's investigation has been under way for at least two years and a number of companies have reported receiving subpoenas related to the investigation.
Mylan had previously disclosed its subpoena on antibiotic doxycycline in filings for quite some time. While other companies are being investigated about blood pressure drug digoxin, Mylan has not disclosed any subpoenas on this drug in its filings.
"Mylan is and has always been committed to cooperating with the Antitrust Division's investigation," Mylan spokeswoman Nina Devlin wrote via email. "To date, we know of no evidence that Mylan participated in price fixing."
Evercore analysts estimate the liabilities for Mylan will be between $3 million and $700 million. The highest fine ever paid under the Sherman Act for this type of problem was $500 million, Evercore analyst Umer Raffat said during an investor call Friday.
According to Raffat, investigators will have to focus on one question as they look at the approximately 24 companies involved in this investigation.
"Is it conscious parallelism or price fixing?" Raffat asked. In other words, are drug prices rising at the same time because of economic principles, or because the drugmakers are working together behind the scenes?