340B Health


in 340B Health News Releases

WASHINGTON, D.C.— Today, the U.S. District Court for the District of Delaware issued a decision in a case brought by AstraZeneca challenging the government's authority to enforce the 340B drug pricing program law. The court vacated a May 2021 enforcement letter the Health Resources & Services Administration (HRSA) sent the company ordering it to restore 340B discounts to safety-net hospitals on drugs dispensed at contract pharmacies. This is the fourth federal court to issue a decision on this matter. Two of those decisions supported HRSA’s position that drug companies do not have the right to impose unilateral conditions on 340B discounts. All three of the earlier decisions are now pending before federal appeals courts.

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

“We are disappointed by today’s decision and call on the Department of Health and Human Services to appeal it. For nearly 30 years, pharmaceutical companies have agreed to a set of federal rules that provides crucial resources for our nation’s health care safety net while giving manufacturers access to lucrative prescription drug markets. More than 700 companies are abiding by those legal agreements, but a growing number of drugmakers – including some of the world’s largest and most profitable – are now violating the law. Two federal courts, a bipartisan majority of Congress, and the Biden administration have clearly stated these limitations are unlawful. They must stop.”

“The actions of these companies are weakening the health care safety net and threatening the health of millions of low-income and rural Americans who rely on it for their care. We continue to believe the law is on our side and will continue to press our case until 340B is restored to its full capacity.”

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