(Adds comment from Mayne Pharma, background)
SYDNEY Dec 16 Shares in Australian
pharmaceutical company Mayne Pharma Group Ltd fell more
than 16 percent on Friday after 20 U.S states filed a lawsuit
against it alleging it engaged in a conspiracy with others to
fix prices on two generic drugs.
The suit was filed on Thursday against Mayne Pharma, Mylan
NV, Teva Pharmaceuticals, Heritage
Pharmaceuticals Inc, Aurobindo Pharma and Citron
The states allege company executives propped up the prices
of the two drugs, the New York attorney general's office said in
Mayne Pharma - which has a market capitalisation of A$2.14
billion ($1.58 billion) - confirmed it had received a subpoena
from the Antitrust Division of the U.S. Department of Justice.
"The board continues to believe the investigation and the
legal proceedings will not have a material impact on its future
earnings," the company said in a statement to the Australian
The civil lawsuit is one piece of a broader generic drug
pricing probe under way in the United States. It has grown over
the past two years to include multiple drugs and companies.
($1 = 1.3585 Australian dollars)
(Reporting by Colin Packham; Editing by Stephen Coates)