Mylan could be next target for drug pricing activists, says analyst

Drug pricing was on Wall Street’s mind again Friday, as Wells Fargo tapped Netherlands-incorporated Mylan (Nasdaq: MYL)as the next target for activists, reported Investor’s Business Daily. Shares of Valeant fell 2.7% to 44.53 by close of trading on June 10, having declined as much as 5.3% on Friday and 16.4% for the week.

Wells Fargo analyst David Maris wrote that, after Canadian drugmaker Valeant Pharmaceuticals (TSX: VRX) and privately-held Turing Pharmaceuticals were hauled in front of Congress and scrutinized by the press for their policies of drastically hiking the prices of recently acquired drugs, he’s been keeping an eye out for other companies in his universe that have been doing a lot of price increases.

“In the last six months, Mylan has raised prices more than 20% on 24 products, and more than 100% on seven products,” Mr Maris wrote in his research note late Thursday. “Mylan has taken some exceptionally large price increases in 2016, including a 542% increase for ursodiol, a generic medication used to treat gallstones; a 444% increase in metoclopramide, a generic medication commonly used to treat gastroesophageal reflux disease (GERD) and gastroparesis; and a 400% increase in dicyclomine, a medication used to treat irritable bowel syndrome,” he added.