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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Third Circuit is first of three federal appeals courts to issue a decision in multiple lawsuits over drug companies’ 340B contract pharmacy restrictions, which have led to conflicting lower court rulings on whether such restrictions are unlawful.
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.