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McKesson Shares Plunge on Drug Price Cuts

Shares of the drug distributor were falling sharply Friday.

Big Pharma shareholders fled in droves across the board Friday, after San Francisco-based McKesson (MCK) - Get McKesson Corporation Report shares fell about 25% on CEO John Hammergren's comment that the company had to significantly cut drug prices to match competitors. The industry is facing growing pressure to reduce drug prices on the back of increased regulatory and media scrutiny, especially following the controversy over Mylan's (MYL) - Get Viatris, Inc. Report  price hiking on its anti-allergy EpiPen product. The company's CEO saying on its' earnings call that "What we began to see more recently is competitive activity that is broader than our original expectations."

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