IE 11 is not supported. For an optimal experience visit our site on another browser.

Mylan Agrees to Settle With DOJ for $465 Million Over EpiPens

After the pressure mounted, Mylan says it has agreed to settle over how it classified EpiPens as "generic" in its rebates to Medicaid and Medicare.
Image: House Oversight and Government Reform Committee hearing on reviewing the rising price of EpiPens
Mylan CEO Heather Bresch points to a chart depicting the average annual price increase of EpiPen auto-injectors while testifying at the House Oversight and Government Reform Committee hearing on Capitol Hill on Sept. 21.MICHAEL REYNOLDS / EPA
/ Source: Reuters

The latest drubbing for Mylan comes with a nearly half-billion price tag.

The company announced Friday it had agreed to a $465 million settlement with the U.S. Department of Justice over how it classified its EpiPens to pay lower rebates to Medicaid and Medicare.

In a statement, the company said the terms of the settlement don't provide any finding for wrongdoing on Mylan's apart.

"This agreement is another important step in Mylan's efforts to move forward and bring resolution to all EpiPen Auto-Injector related matters," said Mylan CEO Heather Bresch in a statement.

"The agreement is in addition to the significant steps Mylan has taken in relation to EpiPen Auto-Injector over the past several weeks, including the unprecedented, pending launch of a generic version of EpiPen Auto-Injector and expansion of our patient access programs for this product."

The Department of Justice was tight-lipped on the matter.

"The Justice Department does not confirm or deny the existence of an investigation," wrote Department of Justice spokeswoman Nicole A. Navas in an email to NBC News.

The news comes as the company has faced increasing pressure over its Medicaid and Medicare rebates, which it has been accused of underpaying.

This week Senator Chuck Grassley on the Senate Judiciary Committee released an analysis showing that in 2015, US taxpayers accounted for more than half of Mylan's EpiPen revenue.

Mylan will record a pre-tax charge of about $465 million in the quarter ended Sept. 30 as a result of the settlement, it said on Friday.

The company also lowered its full-year adjusted profit forecast to $4.70-$4.90 per share from $4.85-$5.15.

Mylan shares jumped to $39.66 per share in after-hours trading after ending at $35.94, just 36 cents above its 52-week low.