NEW YORK () -- Shares of Eli Lilly ( - ) are falling 0.89% to $79.91 in afternoon trading on Friday, after the drug maker received a request from the Justice Department for information about its drug pricing practices.
The Justice Department's civil division and the U.S. attorney's Philadelphia office are investigating Eli Lilly's "treatment of certain distribution service agreements with wholesalers" regarding manufacturer prices for the drug-rebate program for Medicaid, according to a report filed with the SEC, the Wall Street Journal reports.
Medicaid rebates, which are paid by drug companies, are determined based on the average price wholesalers pay to drug manufacturers, the Journal adds.
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The investigation comes as pharmaceutical companies are facing heightened scrutiny about their drug prices, amid pressure from presidential candidates and recent allegations of price inflation.
Separately, TheStreet Ratings team rates LILLY (ELI) & CO as a Buy with a ratings score of B. TheStreet Ratings Team...