Oct. 30--Generic drug maker Mylan Inc. sunk into the red in the third quarter after taking a charge to settle claims by the U.S. Justice Department that it inflated prices of drugs sold to Medicaid patients.

Cecil-based Mylan lost $40 million, or 13 cents per share, for the three months ended Sept. 30. That compares with net income of $182.4 million, or 47 cents, in the year-ago period.

Excluding special items, Mylan said it earned 32 cents per share, beating analysts' consensus estimate of 27 cents.

Mylan CEO Robert Coury said that based on core results, the company was raising full-year earnings guidance to a range of $1.24 to $1.28 per share, excluding one-time items, up from $1.13 to $1.20. Revenue projections were unchanged.

In the most recent quarter, Mylan recorded an after-tax charge of $83 million to settle the dispute with the Justice Department. The settlement did not include an admission of wrongdoing. Mylan and other drug companies were accused of violating laws that require them to sell drugs to Medicaid at the lowest price they are sold to other customers.

Revenue for the third quarter was $1.26 billion, down from $1.66 billion a year ago. The year-earlier period included $455 million related to the company's sale of product rights to the blood pressure drug Bystolic.

Mylan's shares rose 73 cents, or 4.6 percent, yesterday to close at $16.50.

Patricia Sabatini can be reached at psabatini@post-gazette.com or 412-263-3066.

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