340B Court Ruling Offers Manufacturers Short-Term Reprieve In Contract Pharmacy Dispute
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.
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Manufacturer restrictions on discounts to contract pharmacies may have depressed sales for 340B-discounted diabetes drugs in 2021. But sales in other categories, including oncology, immunology and arthritis drugs, were up by 20% to 40%.
Biden Administration officials pledge ongoing efforts to thwart manufacturer restrictions on 340B drug discounts, but at the same time urge hospitals to be more transparent about how they use the savings.
The decision doesn’t directly impact manufacturers or the 340B discounts they are required to provide – and does not address the potentially much broader regulatory issue of whether the Supreme Court’s so-called Chevron doctrine should be changed.