HHS cracks down on AstraZeneca, Eli Lilly, Novartis, Novo Nordisk and Sanofi for limiting access to discounted drugs under the 340B program
Last summer, some of the world’s top drugmakers took matters into their own hands and tried to halt the ballooning of a federal health program that requires the companies to offer steep discounts on their products to contract pharmacies working with hospitals that primarily treat low-income patients.
Companies like Novartis and Eli Lilly raised concerns that the program, known as 340B, had grown beyond what it was initially tasked to do. They also explained how the program was lining the pockets of these hospitals. The hospitals, meanwhile, denounced the unilateral moves by the drugmakers to stop offering the lowered prices to contract pharmacies and complained to HHS’ Health Resources and Services Administration (HRSA), which runs the 340B program.
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