Mylan to Pay $465M Settlement Over Medicaid EpiPen Rebates | NBC Southern California
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Mylan to Pay $465M Settlement Over Medicaid EpiPen Rebates

Mylan said Friday the proposed settlement resolves all potential federal and state government claims

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    AP
    FILE - This Oct. 10, 2013, file photo, shows an EpiPen epinephrine auto-injector, a Mylan product, in Hendersonville, Texas. Mylan, now in the crosshairs over severe price hikes for its EpiPen, said Thursday, Aug. 25, 2016, it will expand programs that lower out-of-pocket costs by as much as half.

    Mylan will pay $465 million to settle allegations that it overbilled Medicaid for its life-saving EpiPen allergy injection.

    The federal government says EpiPen is a branded drug, which means Mylan should have been paying it a far higher rebate under the government's complex pricing rules.

    Marcos del Mazo/LightRocket via Getty Images

    Mylan said Friday the proposed settlement resolves all potential federal and state government claims. It also finds no wrongdoing on the part of the England-based company.

    Mylan also lowered its 2016 guidance for earnings per share in part because of the upcoming launch of generic EpiPens. Its new range is for $4.70 to $4.90 per share, which is below the average analyst estimate of $4.95 per share compiled by FactSet.

    Shares of the company jumped more than 9 percent in after-hours trading.