Mylan N.V (MYL) has reached a settlement of $465 million with the U.S. Department of Justice, answering inquiries about the pharmaceutical company’s price hike of EpiPens, a treatment for severe allergic reactions, that jacked up the price of a two-pack EpiPen to $600.
The company said the settlement is not an admission of wrongdoing, but said it will enter a “corporate integrity agreement” with the Office of Inspector General of the Department of Health and Human Services while it continues to work to finalize the settlement.
As a result of the settlement, Mylan lowered its 2016 earnings guidance. Earnings per share are now estimated to be between $4.70 and $4.90 versus the previously announced $4.85 and $5.15. The company said the settlement, as of now, does not impact its goal of a $6 EPS in 2018. The company is expected to report Q3 2016 earnings Nov. 9.
“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 Chief Executive Officer Heather Bresch, who in late September addressed concerns in front of a Congressional hearing. “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 the EpiPen Auto-Injector and expansion of our patient access programs for this product.”
Mylan shares were last trading up 8.1% in post-trading hours.