Lilly’s 340B Policy Tweak Pushes Contract Pharmacy Farther Out of Reach

Email correspondence between Eli Lilly and Co. and a health system, and a Lilly application form, indicate the company is interpreting its ban on 340B pricing for drugs dispensed by contract pharmacies in a way that could make it harder for 340B hospitals to buy and use Lilly products at reduced 340B prices. | Source: Shutterstock

Lilly’s 340B Policy Tweak Pushes Contract Pharmacy Farther Out of Reach

Drug manufacturer Eli Lilly and Co. is interpreting its ban on 340B pricing for drugs dispensed by contract pharmacies in a way that could make it harder for 340B hospitals to buy and use Lilly products at reduced 340B prices.

On Sept. 1, Lilly stopped selling its products at 340B ceiling prices for shipment to contract pharmacies. It says federal 340B contract pharmacy guidance is unlawful and leads to duplicate discounts and drug diversion. Federal health officials are looking into whether Lilly has broken federal law, but so far, they haven’t stopped the company. Hundreds of members of Congress across the political divide are pressing the U.S. Health and Human Services Department (HHS) to stop Lilly and two other manufacturers, AstraZeneca and Sanofi, that have taken similar action. HIV/AIDS clinics and community health centers have sued HHS to force it to address the manufacturers’ 340B contract pharmacy cutoff.

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