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Valeant Pharmaceuticals International Inc was sued on Monday by buyers of its drugs, who accused the Canadian company of racketeering by forcing them to pay exorbitant prices. The proposed class-action complaint was filed in the U.S. District Court in Manhattan on behalf of unionized New York City police detectives and hotel workers, regarding Valeant's ties to the now defunct specialty pharmacy Philidor RX Services LLC. The plaintiffs accused Valeant of violating the U.S. Racketeer Influenced and Corrupt Organizations Act, and seeks compensatory and triple damages for U.S. health plans and others that bought its drugs from January 2013 to October 2015.
Shares of Mondelez, the maker of Oreo cookies and Cadbury chocolates, rose nearly 4 percent in extended trading on Monday, while Hershey's shares plunged about 12 percent. Hershey rejected a $23 billion cash-and-stock offer by Mondelez in June. "Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement," Mondelez Chief Executive Irene Rosenfeld said on Monday.
The company reduced the out-of-pocket costs of EpiPen for some patients on Thursday, but kept the list price at about $600, a move that U.S. lawmakers and Presidential candidate Hillary Clinton said was not enough. Mylan said on Monday it expected to launch the generic product "in several weeks", an unusual move considering the branded bestseller is still patent protected and major rival treatments have failed to get regulatory clearances. "Our decision to launch a generic alternative to EpiPen is an extraordinary commercial response," Chief Executive Heather Bresch said Monday.