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Shares Slide on Reports DOJ Prepping Charges Against Price-Fixing Drug Makers

The Department of Justice may file charges in its generic-drug investigation by the end of the year, Bloomberg reported on Thursday.
Image: House Oversight Committee Holds Hearing On Rising Price Of EpiPens With Mylan Inc. CEO Heather Bresch
Committee chairman Rep. Jason Chaffetz (R-UT) holds up an EpiPen as he speaks during a hearing before the House Oversight and Government Reform Committee September 21, 2016 on Capitol Hill in Washington, DC.Alex Wong / Getty Images
/ Source: CNBC.com

The Department of Justice may file charges in its generic-drug investigation by the end of the year, Bloomberg reported on Thursday.

The probe is examining whether companies colluded on drug pricing, according to Bloomberg. A number of companies including Mylan and Teva Pharmaceuticals have disclosed subpoenas and are cooperating with authorities, Bloomberg said.

Shares of Mylan, Teva and Endo International plunged after the news, falling 7 percent, 11 percent and 15 percent, respectively.

Lawmakers have recently turned their attention to drug pricing practices in the pharmaceutical industry, calling out price hikes at Valeant Pharmaceuticals and Mylan, among others. The key biotech ETF has fallen 26 percent in 2016, as the sector faces renewed criticism on the campaign trail.