A lawsuit over price fixing by drugmakers is being massively expanded and shares of Mylan are plunging

Mylan CEO Heather Bresch holds up an EpiPen while testifying on Capitol Hill in Washington, Wednesday, Sept. 21, 2016, before the House Oversight Committee hearing on EpiPen price increases.AP

• 46 state attorneys general are investigating generic drugmakers over price fixing of generic drugs.
• In total, 18 companies and two top executives, including Mylan’s president, are now named in the complaint.
• Mylan’s stock fell more than 8% on the news.

A lawsuit alleging price-fixing of generic drugs is about to be expanded to include nearly every state in the country, and one company — Mylan — is already feeling the heat.

Forty-six state attorneys general are alleging price fixing of generic drugs by 18 companies.

“We allege in this complaint that the defendant companies’ collusion was so pervasive that it essentially eliminated competition from the market for these 15 drugs in its entirety,” Connecticut Attorney General George Jepsen said in a statement. “Our ongoing investigation continues to uncover additional evidence, and we anticipate bringing more claims involving additional companies and drugs at the appropriate time.”

That’s up from the 20 state attorneys who sued 6 companies, including Mylan, alleging the generic drugmakers colluded on prices. The drugs in question at the time were a generic antibiotic called doxycycline hyclate and an antidiabetic medication called glyburide.

The states are zeroing in on a man named Rajiv Malik, Mylan’s president and executive director, along with Satish Mehta, CEO at Emcure Pharmaceuticals. Mylan’s shares are down more than 8% on the news.

Shares of other drugmakers named in the complaint, including Teva Pharmaceuticals, are higher Tuesday.

Markets Insider