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Negative impact largely priced into shares of EpiPen-maker Mylan, analyst says

Mylan pops following CEO's Congressional testimony

The outrage over Mylan's price hikes of its lifesaving EpiPen may be mostly baked into the stock at this point, says one analyst.

The pharmaceutical company has come under fire for rapidly increasing the price of its EpiPen. On Wednesday, Mylan CEO Heather Breschappeared before members of the House Committee on Oversight and Government Reform.

While it's "certainly clear that there will be negative impact going forward," Elliot Wilbur, senior research analyst at Raymond James, said that the bad news "is largely priced into the equity" at this point.

The stock, which traded near $42.72 on Thursday, is hovering near the low end of its 52-week range. Mylan shares last hit a 52-week intraday low of $37.59 in October. The stock's current valuation is near historical levels "from which shares have outperformed the S&P," Wilbur said.

He also said a generic version of the EpiPen would lead to "essentially the entire market" converting. Wilbur said that if Teva Pharmaceuticals does get its own generic version approved, it "could probably capture 25 to 30 percent of the EpiPen market." He estimated that Teva would price its product at a 15 to 20 percent discount.

Disclosure: Raymond James & Associates makes a market in shares of Mylan.