Eli Lilly and J&J Challenge 340B Drug Discount Regulations, Propose Rebate Plans

Eli Lilly has initiated a lawsuit against the U.S. Department of Health and Human Services (HHS) and the Health Resources and Services Administration (HRSA) over the 340B drug discount program, following in the legal footsteps of Johnson & Johnson. The case, filed in a Washington, D.C. district court, seeks to secure a ruling that would allow Eli Lilly to grant hospitals rebates rather than upfront discounts for drug purchases eligible under the 340B program[1]. This action underscores the company's stance that the existing framework of the 340B program can be susceptible to misuse by hospitals, which are allegedly capitalizing unfairly on the discounts. As part of a broader industry initiative, the proposed shift to a rebate model is aimed at enhancing the program's integrity and averting possible duplications in discounts, especially when considering Medicaid and Medicare negotiations[1].