Mallinckrodt down 7% on new Citron report

|By:, SA News Editor

Mallinckrodt (MNK -7.4%) slumps on a 40% spike in volume on the heels of a new report from short-seller Citron Research that says the company has been in cahoots with Express Scripts (ESRX +0.1%) to sell over-priced Acthar gel, but now the cat is out to bag after noted investor Jim Chanos described the relationship at the recent SALT conference.

Citron adds that ESRX has apparently reversed its position and will now be making a concerted effort to rein in the price of the medication.

Generic drug makers are also feeling MNK's pain. Almost all are down in early trading.

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