Pharmaceutical Giants vs. U.S. Government: Lawsuit over the 340B Program

The pharmaceutical company Eli Lilly has become the second major drug manufacturer to join the legal disputes with the U.S. government. The point of contention lies in the recently rejected proposals to adjust the so-called 340B program, which aims to sell medications at discounted prices to certain medical facilities. Previously, Johnson & Johnson had already initiated legal action against the officials of the U.S. Department of Health and Human Services and the Health Resources and Services Administration. This administration oversees the 340B program, which has been in place since 1992 to ensure that medications remain accessible to low-income and uninsured patients. Pharmaceutical companies such as Eli Lilly and Johnson & Johnson criticize that the 340B program has grown so extensive that hospitals could circumvent the rules unnoticed to gain financial advantages. The drug manufacturers had proposed selling the medications at regular prices and granting discounts later. However, this change was rejected by the relevant agency. While Johnson & Johnson states that it is in dialogue with the authorities to resolve any issues, Eli Lilly emphasizes that the agency is not authorized to arbitrarily reject the proposed changes. Both companies stress that their proposals align with the original purpose of the program, namely ensuring access to medications for vulnerable patients.