May 13, 2019 / 4:59 PM / a month ago

BUZZ-Teva Pharma: Falls to near 1-1/2 yr low after U.S. states file price-fixing lawsuit

(Updates to add share movements of Indian drug companies)

** Drugmaker’s U.S.-listed shares fall as much as 16.4% to $12.05, touching lowest in ~1-1/2 yrs

** U.S. states file price-fixing lawsuit against Teva, accusing it of orchestrating scheme with 19 other drug cos to inflate drug prices and stifle competition for generic drugs, state prosecutors said on Saturday

** Lawsuit seeks damages, civil penalties and actions by court to restore competition to generic drug market

** Teva USA says will fight lawsuit

** Citigroup says generic price collusion overhang on the sector unlikely to abate any time soon; notes proving price fixing is not a trivial matter

** Says while the magnitude and timing of potential settlements is almost impossible to assess, criminal fines under Sherman Act are unlikely to be material, while civil fines could be much higher

** Mylan NV, also named in the lawsuit, falls 8.3% to >7 yr low; MYL biggest percentage loser on S&P 500 Health Care index

** Lawsuit also mentions Sandoz unit of Novartis AG

** Novartis says claims of price fixing against its Sandoz generics unit are without merit

** Shares of Indian drugmakers named in the lawsuit, Lupin Ltd, Aurobindo Pharma Ltd, Dr. Reddy’s Laboratories, closed down 2%-4%

** Shares of other generic drugmakers also fall: Novartis AG 2.0%, Endo International 16.5%, Perrigo Co Plc 4.1%, Lannett Company Inc 17.1%, and Amneal Pharmaceuticals Inc 9.7%

** Up to Friday’s close, TEVA down ~7% this year (Reporting by Aakash Jagadeesh Babu and Manojna Maddipatla in Bengaluru)

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