A federal district judge in Indianapolis late this afternoon declined to temporarily restrain federal health officials from requiring drug maker Eli Lilly, based on a May 17 enforcement letter, to provide 340B discounts on drugs dispensed by contract pharmacies. | Shutterstock

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Late Breaking Developments in Lilly and AstraZeneca’s 340B Contract Pharmacy Lawsuits

A federal district judge in Indianapolis late this afternoon declined to temporarily restrain federal health officials from requiring drug maker Eli Lilly, based on a May 17 enforcement letter, to provide 340B discounts on drugs dispensed by contract pharmacies. Nonetheless, the judge plans to proceed with a June 16 hearing on Lilly’s request for a preliminary injunction to block the enforcement of a Dec. 30 HHS advisory opinion and allow it to amend its case to also challenge the May 17 letter.

U.S. District Judge Sarah Evans Barker ruled from the bench that the letter poses “no irreparable harm” to Lilly, and that the company only needs to provide a plan to HRSA for restoring discounts. Lilly is suing to stop HHS from enforcing against it a Dec. 30 advisory opinion that the 340B statute requires Lilly and other drug manufacturers that participate in 340B to offer their products at or below 340B ceiling prices when covered entities use contract pharmacies.

A federal district judge in Indianapolis late this afternoon declined to temporarily restrain federal health officials from requiring drug maker Eli Lilly, based on a May 17 enforcement letter, to provide 340B discounts on drugs dispensed by contract pharmacies.

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