Lilly (LLY.US) and Johnson & Johnson (JNJ.US) have sued US agencies to block discount drug plans.
1min read Lilly Inc. (LLY.US) has sued the Health Resources and Services Administration (HRSA) over its attempts to unreasonably block a specific discount pattern for drugs supplied under the government's 340B program, similar to a lawsuit filed by rival Johnson & Johnson (JNJ.US) for the same reason. Lilly filed the lawsuit in Washington, D.C. federal court on Thursday, alleging that HRSA lacks reasonable basis or process in trying to block its cash supplement pattern for 340B covered entities. Participating pharmaceutical companies must provide discounts for expensive outpatient drugs provided to healthcare providers serving uninsured and low-income patients. Lilly's cash supplement pattern involves weekly direct cash payments to healthcare providers aimed at preventing current program abuses and ensuring compliance with existing laws and new requirements under the Inflation Reduction Act. Lilly emphasized that it filed the lawsuit because HRSA has no authority to arbitrarily refuse a pattern that is consistent with the intent of the 340B program, increases transparency, efficiency and program integrity. Earlier in the week, Johnson & Johnson also filed a lawsuit alleging that the U.S. Department of Health and Human Services (HHS) denied its request to adjust the discounts for its drugs Xarelto and Stelara under the 340B program.