ASX-LISTED Adelaide-based specialty brand and generic pharmaceutical company Mayne Pharma Group has lost almost $400 million, or 15.5%, in market value for its shares after it was named as being part of an investigation by US authorities.
US prosecutors may be charging generic drug makers on suspicion of price collusion after Bloomberg reported an antitrust investigation by the US Justice Department (DOJ).
Other drug companies named included US-listed Mylan, Teva and Lannett, which all also saw dramatic slumps in market value.
In an ASX announcement on Friday, Mayne said "Contrary to an inaccurate statement made in the US press overnight, Mayne Pharma has previously stated that it is cooperating with the DOJ in its investigation and continues to do so.
"Mayne Pharma continues to believe these investigations will not have a material impact on its future earnings...however no assurance can be given as to the timing or outcome of the investigation."
Just the previous day, Mayne announced the launch of MS Contin generic, morphine sulfate extended release tablets (15mg, 30mg, 60mg and 100mg) in the US, having been granted US FDA approval.
"It is pleasing to report that our Generic Products Division now directly markets more than 50 products and we have a growing pipeline of more than 40 generic and branded drug products targeting US markets with IMS sales greater than US$7 billion," the announcement stated.
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