On Monday, shares of controversy-ridden pharmaceutical company Mylan NV are gaining, up over 8.5% in morning trading after the drug maker agreed to pay $465 million in order to settle charges that Mylan overcharged the U.S. government for its anti-allergy EpiPen Auto-Injector.
MYL stock was up as much as 13% in premarket trading.
Mylan struck the deal last Friday after the market closed to pay the U.S. Department of Justice, as well as other agencies, over whether or not its EpiPen should be classified as a generic or brand-name drug under the Medicaid Drug Rebate program.
Mylan CEO Heather Bresch commented, "This agreement is another important step in Mylan's efforts to move forward and bring resolution to all EpiPen Auto-Injector related matters…Entering into this settlement is the right course of action at this time for the Company, its stakeholders and the Medicaid program."
Since August, Mylan has been facing intense backlash after it was revealed that the price of EpiPen increased over 400% over the past several years; a standard two-pack of the allergy medication now costs nearly $600.
The pharmaceutical company also announced a new full-year earnings forecast. Mylan now expects earnings per share of $4.70-$4.90, much lower than its previous guidance of $4.85-$5.15 per share.
Currently, MYL is a Zacks Rank #3 (Hold), and has lost over 33% year-to-date.
For more information on Mylan’s ongoing saga, check out Episode #13 of the Zacks Friday Finish Line podcast:
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