The maker of EpiPen has agreed to pay the government $465 million after overcharging for the medicine

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 maker to Medicaid and Medicare, rather than a 23.1% rebate for brand name drugs.

"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 CEO Heather Bresch in the statement.

Following the news, shares of Mylan had jumped nearly 8% in after-hours trading to $38.75 per share.

More to come...