Representative Elijah Cummings, Chairman of the U.S. House of Representatives Committee on Oversight and Reform, announced the launch of an investigation yesterday into drug pricing practices, Wells Fargo analyst David Maris tells investors in a research note titled "And So It Begins..." Yesterday's news will be the first of many investigations, Maris writes. He thinks the industry and stock valuation multiples "are vulnerable given intense focus and investigation by the House." Of the names he covers, Mallinckrodt (MNK) and Teva (TEVA) were named in the investigation. Near-term, the investigation creates "some additional headline risk" on the sector and the companies, particularly for Mallinckrodt, which has previously been under scrutiny for Acthar, says Maris.

Vanda Pharmaceuticals "announced that the Supreme Court denied Vanda's petition for a writ of certiorari in its HETLIOZ(R) Abbreviated New Drug Application litigation against Teva Pharmaceuticals USA, Inc., Apotex Inc. and Apotex Corp." CEO Mihael H. Polymeropoulos stated: "We are disappointed that the Supreme Court has decided not to hear our case and clarify the lower court standard for obviousness in patent law. However, we are pleased that our case has drawn attention to an area of law that has broad and significant implications in life sciences innovation."