HHS Warns Drug Manufacturer Regarding 340B Practices

September 30, 2020

Last week, the U.S. Department of Health and Human Services (HHS) sent a strongly worded letter to Eli Lilly and Company regarding Lilly’s plans to unilaterally restrict provision of certain drugs to 340B entities.  Lilly had requested of HHS an advisory opinion regarding its plans to cease provision of certain drugs to 340B entities under contract pharmacy arrangements. While HHS indicated to Lilly that its request was under review, it chided Lilly’s timing of the action during the COVID-19 emergency and warned the company regarding activities that would violate 340B requirements.

WSHA, the American Hospital Association, members of both the U.S House and Senate, and 340B provider organizations urged HHS to review the recent activities of the major drug manufacturers restricting provision of drugs and/or discounts to 340B entities. (Andrew Busz, andrewb@wsha.org)


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