340B Health


in 340B Health News Releases

WASHINGTON, D.C.— Today, the federal government appealed a decision by the U.S. District Court for the District of Columbia that held that the 340B drug pricing program statute does not categorically prohibit drug companies from imposing conditions on 340B discounts to safety-net hospitals on drugs dispensed at community-based pharmacies. Department of Justice attorneys representing the Department of Health and Human Services (HHS) filed notices with the D.C. district court stating that the government is appealing the court’s decision in lawsuits involving Novartis and United Therapeutics to the U.S. Court of Appeals for the D.C. Circuit. In separate notices filed today with district courts in New Jersey and Indiana, the government also indicated it was appealing aspects of decisions in cases involving the drug companies Eli Lilly, Sanofi, and Novo Nordisk. The drugmakers are among the 10 companies that have imposed limits on hospitals’ access to 340B discounts through partnerships with community pharmacies.

The following statement is attributed to 340B Health President and CEO Maureen Testoni:

“We are delighted the government is appealing the decision in the Novartis and United Therapeutics cases to the U.S. Court of Appeals for the D.C. Circuit. We agree with HHS that this lower court decision is wrong and should be reversed. Two other federal courts have found drug companies cannot impose unilateral restrictions or conditions on 340B discounts. The government appeals of other aspects of those rulings to the U.S. Courts of Appeals for the Third Circuit and for the Seventh Circuit demonstrate the government’s strong belief that the drug company actions are not permissible under the 340B statute. Drugmakers that have put these limits in place are weakening the health care safety net and harming the patients who rely on it.”

“The 340B hospital community applauds HHS for continuing its strong defense of the 340B law and its authority to enforce that law against noncompliant drug companies. On Dec. 20, more than 850 hospitals participating in 340B sent a letter to HHS Secretary Xavier Becerra urging the government to appeal the D.C. district court decision in the Novartis and United Therapeutics cases. We are pleased the government has agreed.”

Contact: Richard Sorian at richard.sorian@340bhealth.org or 202-536-2285.