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Mylan to pay $465-million settlement over Medicaid EpiPen rebates

Mylan to pay $465-million settlement over Medicaid EpiPen rebates
A pharmacist holds a package of EpiPens in Sacramento on July 8. (Rich Pedroncelli / Associated Press)

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 a far higher rebate under the government's complex pricing rules.

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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% in after-hours trading.

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