Investors bid up Mylan (MYL) after the company settled up with the federal government Friday over the classification of its EpiPen auto injectors in the Medicaid Drug Rebate Program. The pharmaceutical company’s stock jumped 12% in trading before market’s open Monday, hitting $35.94 per share. Following the market’s open, the stock soared another 10%, reaching $39.49 per share. The market reaction came on the heels of an announcement from Mylan Friday after the close that the company will pay $465 million to the U.S. Department of Justice and other government agencies to settle charges that it misclassified the Epipens, which is used to treat life-threatening allergic reactions, for purposes of Medicaid reimbursement. By classifying the EpiPens as a generic product, the company could pay lower rebates to patients. Yet the company’s priced the product as if it were a brand name, “innovator” drug. Federal regulators claimed the company cost taxpayers $163 million from 2011 to 2015 as …
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Mylan Stock Soars over 10% on EpiPen Medicaid Settlement