340B Health


in 340B Health News Releases

WASHINGTON, D.C.— Earlier today, the U.S. Court of Appeals for the Third Circuit issued a decision largely in favor of three drug companies that have imposed harmful limits on safety-net hospitals’ access to 340B drug pricing program discounts. The three-judge panel concluded that the Department of Health and Human Services (HHS) cannot require AstraZeneca, Novo Nordisk, and Sanofi to deliver 340B-discounted drugs purchased by hospitals to an unlimited number of community and specialty pharmacies. This is the first decision coming out of the three federal appeals courts that are considering multiple lawsuits over drug companies’ 340B restrictions, including cases in which lower courts ruled that such restrictions are unlawful.

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

“We respectfully disagree with the Third Circuit’s decision that drug companies are not required to offer 340B discounts through all community and specialty pharmacy partners. We are encouraged by the court's recognition that companies must offer their drugs at 340B pricing to all eligible covered entities, which could require preserving discounts through these pharmacy partners in certain instances. Amid high prescription drug prices and limited federal resources, 340B hospitals rely on access to discounts through community and specialty pharmacies to care for their patients in need. Continued barriers to that access will weaken the health care safety net, harm patients with low incomes and those living in rural areas, and drive drug prices even higher. We await decisions from the other two appeals courts on this crucial issue, and we urge the Biden administration to continue a strong defense of its interpretation of the 340B law.”

Contact: David Glendinning at david.glendinning@340bhealth.org or 202-536-2289.