Becker's Healthcare January 30, 2023
Paige Twenter

A federal appeals court ruled in favor of three drugmakers Jan. 30 in a case over requirements of whether they should give 340B drug pricing discounts to contract pharmacies.

HHS filed suit against Sanofi, AstraZeneca and Novo Nordisk with allegations of denying drug pricing discounts stipulated by Section 340B of the Public Health Service Act, which requires pharmaceutical companies to discount outpatient drug sales to healthcare organizations that serve uninsured and low-income patients.

HHS lost.

“Congress never said that drugmakers must deliver discounted Section 340B drugs to an unlimited number of contract pharmacies,” the court wrote in opinion. “So by trying to enforce that supposed requirement, the government overstepped the statute’s bounds.”

After HHS said 340B hospitals and...

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