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CompilationFan Dongdong
A few days ago, news showed that many pharmaceutical manufacturers such as Eli Lilly, AstraZeneca, Novartis, Novo Nordisk, Sanofi and United Biotech may face fines for violating the 340B drug discount plan
.
For many years, there has been disagreement between US drug suppliers and manufacturers regarding the 340B drug discount program created in 1992
.
In order to serve low-income groups, the plan requires pharmaceutical companies to provide suppliers with heavily discounted outpatient drugs
However, according to HRSA, in July last year, some drug manufacturers, including Eli Lilly and Novartis, stopped selling drugs at low prices to suppliers of the 340B drug discount plan and instead dispense drugs through contract pharmacies
.
Other drug manufacturers have also adopted a method of restricting sales, and only after the insured entity proves that the patient meets the 340B standard, can they sell related drug products
HRSA stated that these letters instructed drug manufacturers to submit plans to comply with the law, but the responses of major drug companies showed that "manufacturers refused to comply
.
" Michelle Herzog, acting director of the Office of Pharmacy Affairs, told drugmakers in a series of letters sent on Wednesday that HRSA is asking the inspector general to weigh the status quo
However, pharmaceutical companies insist that the 340B plan will push up patient costs
.
This claim is mostly not supported by external research
In January of this year, Indianapolis-based Eli Lilly filed a lawsuit in an attempt to block the rules on how hospitals and drugmakers handle disputes over Plan 340B, which were finalized in December last year
.
After Eli Lilly won the case, in March this year, a federal judge approved Eli Lilly’s preliminary injunction request, claiming that the U.
The ruling also put an end to a way that HRSA and community health centers could have challenged drugmakers to restrict the sale of discounted drugs to contract pharmacies
.
In this regard, Eli Lilly claimed that the current U.
Soon after the rule was implemented, the American Hospital Association, the American Association of Medical Colleges, the American Basic Hospital and the three independent hospitals announced litigation against major pharmaceutical companies.
Reference source:
Lilly, Novartis, other pharmas could face fines for violating 340B law
