BUZZ-Biotech companies: Citron report on Valeant drags down sector

Wed Oct 21, 2015 1:25pm EDT
 
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** Biotech companies' shares fall after report from short-seller Citron Research questions Valeant Pharmaceuticals International Inc's distribution relationships

** Valeant's U.S.-listed shares down 36 pct, Allergan Plc down 5 pct, Endo International Plc down 15.8 pct, Mallinckrodt Plc down 7.8 pct, Horizon Pharma Plc down 12.6 pct

** Allergan says nearly all of its drugs are distributed through traditional wholesale and retail channels; clarification comes 2 days after New York Times report said drugmakers were using specialty pharmacy distributors to work around barriers to raise drug prices

** Nasdaq Biotechnology index down 2.8 pct, second straight day of decline

** Up to Tuesday's close, index had fallen 14 pct since Sept. 21 when Democratic presidential candidate Hillary Clinton tweeted intent to tackle higher drug prices