Mylan to pay $465M settlement over Medicaid EpiPen rebates

Markets Associated Press

FILE - In this Wednesday, Sept. 21, 2016, file photo, Mylan CEO Heather Bresch holds up EpiPens while testifying on Capitol Hill in Washington, before the House Oversight Committee hearing on EpiPen price increases. On Friday, Oct. 7, 2016, Mylan ... agreed to pay $465 million to settle Justice Department allegations that it overbilled Medicaid for its life-saving EpiPen allergy injection. (AP Photo/Pablo Martinez Monsivais, File) (The Associated Press)

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

Continue Reading Below

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.

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.