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The Big Question on the Minds of Every 340B Stakeholder

As we pass the third anniversary of the pharmaceutical industry’s surprise decision to significantly scale back access to 340B pricing in the contract pharmacy setting, the key question is:  Why is it taking so long to come up with a resolution?  One of the more puzzling aspects to many of us has been the seemingly slow nature of the legal cases winding through the federal courts.


Over two years ago, six drug manufacturers sued the Department of Health and Human Services (HHS) in various federal court jurisdictions after the department concluded the companies had violated the law and must restore unfettered access to 340B discounts at pharmacies contracting with 340B covered entities. Three legal challenges to the HHS orders were addressed at the federal district court level and appealed to the federal circuit court level.  Two additional, related cases—an October 2021 suit by Boehringer Ingelheim (BI) and a July 2022 suit by Merck—were paused.


The lawsuits were consolidated into three cases: 

• Novartis/United Therapeutics v. HHS in the U.S. Court of Appeals for the District of Columbia Circuit

• Eli Lilly v. HHS in the U.S. Court of Appeals for the 7th Circuit in Chicago

• Sanofi /Novo Nordisk /AstraZeneca v. HHS before the U.S. Court of Appeals for the 3rd Circuit in Philadelphia


Ironically, the case in which oral arguments were heard most recently was the only one yet decided. The case was argued before the 3rd Circuit on Nov. 15, 2022 and an opinion was handed down in favor of the drug manufacturers on Jan. 30, 2023. Ten months have passed since drug company and government attorneys made their respective cases to the judges in the other two appellate court cases. The Novartis/United Therapeutics cases was argued Oct. 24 before the federal appeals court in Washington, D.C. and the Lilly case was argued Oct. 31 before the 7th Circuit based in Chicago. All three cases were heard by three-judge panels. Read more >

Verity Solutions

Verity Solutions News & Announcements

The Verity Solutions mission is to help our partners achieve pharmacy excellence through highly efficient, game-changing technology and exceptional support, enabling every customer to maximize their savings opportunity. It is built on a partnership rooted in trust and confidence in the work we do together.
Founded in 2015 to support 340B participants, Verity now offers pharmacy purchase optimization solutions beyond 340B for all healthcare entities that also meet the needs of our existing customers. We do this while staying true to our core focus of pharmacy supply chain solutions.
• Recognized as Best in KLAS: 340B Management Systems for seven years
• Featured in the 2024 KLAS Emerging Solutions Top 20 Report for VERISAVE® Purchase Optimization.
Contact Verity today to learn all the ways we can help support your mission through optimized pharmacy savings opportunities.

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Posted by: RXinsider Staff

RXinsider is a multimedia publishing and technology company offering print publications, digital platforms, events, and content creation services to the B2B pharmacy market.

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