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Pro Analysis

Citi downgrades Mylan, says EpiPen price scrutiny to continue even under GOP administration

Mylan EpiPen
Drew Angerer | Getty Images
Mylan EpiPen

Citi Research lowered its rating for Mylan to neutral from buy, saying the company's financial results will be weaker than expected due to drug pricing difficulties.

Mylan CEO Heather Bresch testified before Congress in September to defend the company's more than 500 percent price hike of its anti-allergy EpiPen product in the previous years.

"We anticipate ongoing net pricing pressure on EpiPen as public and political scrutiny on the franchise continues," analyst Liav Abraham wrote in a note to clients Wednesday. "With valuation currently roughly in line with the peer group average, we see limited potential for meaningful multiple expansion."