Novartis Sues HHS Over 340B Drug Discounts Dispute

June 10, 2021

Novartis has become the latest pharma company to sue HHS over its threats to levy financial penalties against drugmakers who hold back 340B drug discounts from contract pharmacies, an effort that’s won a preliminary injunction against any fines for now.

In filing its lawsuit in the U.S. District Court for the District of Columbia, Novartis took action last week in response to potential $5,000 fines by HHS’ Health Resources and Services Administration for each instance in which a drugmaker doesn’t offer 340B discounts for certain contract pharmacies.

Novartis has asked the court to find the department’s policy unlawful and order that HHS cease its enforcement actions against the company regarding its 340B contract pharmacy policy. The court granted a preliminary injunction shielding the company from the potential fines at least temporarily as its litigation against the department progresses.

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