Mylan (NSDQ:MYL) is nearing a $30 million settlement with the Securities and Exchange Commission (SEC) over an investigation involving the company’s EpiPen auto-injector and the Medicaid drug rebate program.
The SEC probe was announced in 2016, shortly after Mylan agreed to pay $465 million to the U.S. Department of Justice to settle claims that it underpaid Medicaid for EpiPen by misclassifying the device as a generic. The Centers for Medicare and Medicaid Services reported in 2016 that it spent $797 million on the EpiPen between 2011 and 2015, including rebates.
Mylan said in a regulatory filing today that it had reached an agreement in principle with the SEC’s enforcement division to pay the $30 million without admitting or denying the allegations. The SEC must approve the settlement before it becomes final, Mylan said.
Reports surfaced in 2016 that Mylan raised the price of EpiPen by more than 500% over the previous decade. The controversy spurred Mylan and other companies to launch generic versions of the device, used to halt severe allergic reactions.