Sanofi, Eli Lilly, Novo Nordisk, AstraZeneca Face Renewed Claims Of Conspiring To Restrict 340B Discounts

A federal appeals court has revived a proposed class action accusing four major drugmakers of conspiring to restrict a government-mandated drug discount program, allegedly driving up costs for safety-net hospitals and clinics serving low-income patients.

The lawsuit, brought by Mosaic Health Inc. and Central Virginia Health Services Inc., claims Sanofi SA’s (NASDAQ:SNY) Sanofi-Aventis U.S., Eli Lilly and Co (NYSE:LLY)., Novo Nordisk A/S (NYSE:NVO), and AstraZeneca Plc’s (NASDAQ:AZN) AstraZeneca Pharmaceuticals LP coordinated to limit price breaks on diabetes drugs provided through the Section 340B Drug Discount Program.

The program requires manufacturers of Medicare and Medicaid-covered drugs to sell them to eligible providers at or below a set ceiling price.

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For years, the drugmakers offered these discounts for purchases made through retail pharmacies, helping lower costs for vulnerable patient populations. But starting in 2020, the companies allegedly moved in lockstep to restrict access.

According to plaintiffs, the firms lobbied the federal government, sometimes through shared lobbying firms and ...