Courts to de­cide on whether drug­mak­ers have to sup­ply dis­count­ed drugs to un­lim­it­ed con­tract phar­ma­cies

The 340B pro­gram may soon be in a mo­ment of up­heaval. Two dif­fer­ent courts will soon weigh in on whether Pres­i­dent Biden’s HHS can rein in drug­mak­ers’ in­ter­pre­ta­tion of how 340B works.

Back in May, Biden’s HRSA act­ing ad­min­is­tra­tor Di­ana Es­pinosa sent iden­ti­cal let­ters to As­traZeneca, Eli Lil­ly, No­var­tis, No­vo Nordisk, Sanofi and Unit­ed Ther­a­peu­tics, ex­plain­ing how the ad­min­is­tra­tion has de­ter­mined the com­pa­nies’ poli­cies that place re­stric­tions on 340B pro­gram pric­ing (which is steeply dis­count­ed drug prices meant for hos­pi­tals’ poor­est pa­tients) for con­tract hos­pi­tal phar­ma­cies are in di­rect vi­o­la­tion of the 340B statute.

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