Federal appeals court sides with drugmakers on 340B limitations

A fed­er­al ap­peals court ruled on Tues­day that drug­mak­ers are not re­strict­ed from set­ting con­trac­tu­al lim­its on the dis­tri­b­u­tion of dis­count­ed drugs un­der a fed­er­al drug dis­count pro­gram known as 340B.

The 340B pro­gram re­quires drug man­u­fac­tur­ers to of­fer dis­counts to cer­tain health sys­tems and hos­pi­tals serv­ing low-in­come pop­u­la­tions. But drug­mak­ers and leg­is­la­tors have ac­cused some sys­tems of abus­ing the pro­gram, and as a re­sult, some man­u­fac­tur­ers have set their own lim­its around par­tic­i­pa­tion. Some, for ex­am­ple, have put lim­its on the num­ber of phar­ma­cies they’ll ship to.

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