340B Health


in 340B Health News Releases

WASHINGTON, D.C. —  Today, the U.S. District Court for the District of New Jersey issued a decision in a pair of lawsuits brought by drug makers Sanofi and Novo Nordisk challenging the government’s authority to enforce the 340B drug pricing law. In her decision, Chief Judge Freda Wolfson rejected the companies’ challenges and upheld the government’s right to enforce the law. The cases surround a year-long dispute involving eight drug companies that have refused to honor 340B discounts on drugs purchased by safety-net hospitals and dispensed in community pharmacies. Both companies asserted the 340B law does not explicitly include such pharmacies in the program, but the Judge said such a view would render the program a “dead letter.” Judge Wolfson also upheld the government’s administrative dispute resolution policy.

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

“Today’s ruling makes clear the actions of some drug companies to deny 340B discounts to hospitals, health centers, and clinics are unlawful and must stop. The court has correctly found that such actions violate the 340B statute and upheld the government’s right to enforce the law.”

“This is the second such ruling, and it is becoming more and more certain that these denials cannot be allowed to continue. Both courts have found the 340B statute allows for the use of contract pharmacies and rejected the manufacturers’ claims to the contrary.”

“We are grateful to the Department of Health and Human Services for defending the law and look forward to its next steps in enforcement. The sooner these denials are reversed the better the situation for safety-net hospitals and the patients with low incomes and living in rural communities that they treat.”

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