Mylan, the marker of the EpiPen, has agreed to pay the federal government a $465 million settlement after it 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 marker to Medicaid and Medicare, rather than a 23.1% rebate for brand name drugs.
Following the news, shares of Mylan had jumped nearly 8% in after-hours trading to $38.75 per share.
More to come…
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.