LAS VEGAS: Noted short-seller Jim Chanos on Thursday slammed the alliance between Express Scripts and Mallinckrodt Plc, saying their practices make drug prices excessively high.
Chanos, speaking at SkyBridge Capital's SALT conference in Las Vegas, called the companies' use of third parties "a really questionable practice" and dubbed the partnership a "murky alliance." Mallinckrodt shares hit a session low of US$39.60 after the comments and were last down 3.2 percent.
The Kynikos Associates LP hedge fund manager also cited existing regulatory pressure on Express Scripts' pharmacy benefit manager practices and called for U.S. Senator Claire McCaskill to investigate.
(Reporting by Lawrence Delevingne; Editing by Meredith Mazzilli)