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Lilly for the fifth time this year has announced refunds for overcharges on 340B-acquired drugs.

Lilly for the Fifth Time This Year Announces Refunds for 340B Overcharges

Drug manufacturer Eli Lilly for the fifth time this year has announced refunds for overcharges on 340B-acquired drugs. The latest round is for purchases during the first quarter of 2020.

The U.S. Health Resources and Services Administration posted Lilly’s notice yesterday. Lilly said

the overcharges were due to average manufacturer price and best price resubmissions to the government to account for lagged transactional data.

The Indiana-based company is providing refunds on six NDCs. Earlier this year, Lilly in such notices began listing NDCs for which price restatements should have raised, not lowered, 340B ceiling prices. It lists 12 such NDCs in this notice. As in the prior notices, it says in this one that it “has elected not to seek recoupment of these underpayments from covered entities.”

340B provider advocates argue that the 340B law does not require covered entitles to provide refunds when manufacturers miscalculate 340B prices.

Astellas Pharma, BioMarin, Mallinckrodt, and Teva also have said in such notices that they are not seeking reimbursement or repayments from covered entities for paying less than recalculated ceiling prices. None have gone as far as Lilly has in identifying the NCDs for which it would seek extra compensation.

Lilly in the summer of 2020 was the first drug manufacturer to restrict 340B pricing when covered entities use contract pharmacies. Bausch Health became the 18th this summer.

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