Mylan, the marker of the EpiPen, has agreed to pay the federal government a $465 million settlement after it allegedly overcharged government healthcare agencies for the medicine, according to a release from the firm.
Mylan had underpaid Medicare and Medicaid by classifying the EpiPen as a generic drug. Generic drugs are subject to a 13% rebate from the maker to Medicaid and Medicare, rather than a 23.1% rebate for brand name drugs.
“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 the statement.
“Entering into this settlement is the right course of action at this time for the Company, its stakeholders and the Medicaid program.”
The settlement comes just two days after the Center for Medicare and Medicaid Services confirmed that the company had overcharged the government health insurance program, drawing fresh cries of outrage from lawmakers. Mylan had previously come under fire for the massive 500% price increase for EpiPens since 2009.
The settlement does not include any admission of wrongdoing from the company according to the release.
Following the news, shares of Mylan had jumped nearly 9.2% in after-hours trading to $39.26 per share.