340B Contract Pharmacy Feud: Court Undercuts HHS Position Against Drug Firms In Ruling
Federal district court denies HHS request to dismiss AstraZeneca’s lawsuit, but also suggests Congress needs to clarify the contract pharmacy issue.
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Federal court vacates enforcement letter to Lilly from HRSA, but the decision was not completely favorable to pharma. It also offers the view that the law does not allow manufacturers to restrict 340B discounts to hospitals using multiple contract pharmacies.
US government moves ahead with enforcement action while several court decisions remain pending on the viability of its interpretation of the law governing the 340B outpatient drug discount program. Underscoring industry’s confidence in its opposing view, Merck & Co. recently joined the companies that are restricting discounts to contract pharmacies.
As stakeholders begin to mull the impact of the Arthrex opinion, HHS withdraws its advisory opinion concluding manufacturers are legally bound to provide 340B discounts to contract pharmacies, and Lilly takes aim at 340b contract pharmacy ‘replenishment’ model.