Shares in a number of generic drugmakers fell after a report that a probe into price fixing in the sector had been expanded, MarketWatch reported Monday.
Connecticut Assistant Attorney General Joseph Nielsen announced that the investigation had been expanded to include at least 16 companies and 300 drugs.
The report also revealed that two former Heritage Pharmaceuticals have pleaded to federal criminal charges, adding that they are cooperating with the probe.
Bernstein Ronny Gal noted that although the report indicates some risk to companies, it did not include much unknown information but cautioned that it could be a sign that "something more is brewing."
"Considering this additional evidence has been building, I find it very interesting that the article wasn't more specific," added Evercore analyst Umer Raffat.
Other drugmakers named in the investigation include Abbott, Dr. Reddy's Laboratories, Endo International's Par Pharmaceuticals unit, Lannett, Mylan, Novartis' Sandoz unit, Pfizer, Sun Pharmaceutical and Teva.
To read more NewsPoints articles, click here.