Mylan N.V. (NASDAQ:MYL) and Teva Pharmaceutical Industries Ltd. (ADR) (NYSE:TEVA) are facing accusations issued by 20 states, alleging they push up prices of two products, one of them is an antibiotic, doxycycline hyclate, and the other is a drug for diabetes, glyburide. The charges included other companies. 20 other states had already filed suits earlier so that makes a total of 40. As per the suit, both companies communicated with Heritage Pharmaceuticals Inc. and agreed on a certain market share for each, then they refused some bids by customers they were not interested in. Department Of Justice (DOJ) then charged two former executives of price collusion, as well as Jeffrey Glazer, former Heritage CEO, who was also charged of fixing prices and allocating patients for doxycycline and glyburide. Biotech stocks shares of Teva barely moved down on Wednesday, while those of Mylan actually went up.
Mylan N.V. Achieves Big Earnings
Despite the charges against Mylan, the company enjoyed enormous sales achievements everywhere, since the company has branches in North America, Europe and many other countries in Africa and Asia. The achievement growth is great all over the world but it’s maximum in Europe, the European revenue in the 4th quarter of 2016 soared 50% higher than that of the previous year, and the main reason behind this is the acquisition of the Swedish company, Meda AB (STO:MEDA-A) for topical non-sterile products. In addition, Mylan also introduced two biosimilars to the market, and it was approved by the Food and Drug Administration (FDA). That’s probably the main reason why Mylan N.V. biotech stocks in 2017 are still going up.
Teva Pharmaceuticals Downgraded Upon The Loss Of Multiple Sclerosis Drug
On the other hand, this year hasn’t been so good for Teva, since the company is facing major losses according to biotech stock analysts. Teva is facing a number of problems now, one of them is losing 4 out of 5 patent drugs for MS, Copaxone, since Pfizer Inc. (NYSE:PFE) and Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) are now working on a Copaxone copy. Besides having the former CEO, Erez Vigodman, stepping down for investigation about the Mylan suit. In addition to one more bribery scandal in Russia, Ukraine, Mexico and Isreal.