Shares of Mallinckrodt, Endo, Teva, Drugmakers With Opioid Business, Fall

   By Micah Maidenberg

Mallinckrodt PLC (MNK), Endo International PLC (ENDP) and Teva Pharmaceutical Industries Ltd. (TEVA) shares dived a day after a judge ordered Johnson & Johnson (JNJ) to pay a fine related to its alleged role in opioid-related deaths in Oklahoma.

Shares of Mallinckrodt fell 15% in late-afternoon trading. American depositary receipts of Teva were 9% lower. Endo's stock dropped 12%.

On Monday, an Oklahoma judge ordered J&J to pay a fine of $572 million for its alleged role in unintentional opioid deaths over a 10-year period in the state. Prosecutors for the state sought $17 billion.

J&J has denied wrongdoing and plans to appeal the judge's ruling. Shares of J&J were up about 2%.

The question that many investors are now asking is what the verdict may mean for other pharmaceutical companies.

Mallinckrodt faces lawsuits over the alleged role its products played in fostering the opioid crisis, including in a court in Ohio. U.S. drug enforcement officials told the Ireland-domociled company in 2010 they believed it was a "kingpin within the prescription drug cartel," The Wall Street Journal reported Sunday.

Mallinckrodt has denied allegations brought in the suits.

Teva settled with prosecutors in Oklahoma, but faces opioid-related litigation in other jurisdictions. Endo also faces lawsuits related to its alleged role in the opioid crisis.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

August 27, 2019 15:59 ET (19:59 GMT)

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