Sanofi has filed a lawsuit accusing the Biden administration of unlawfully preventing the company from changing payment terms to some hospitals that participate in a federal drug discount program, the fourth time a pharmaceutical company has gone to court in recent weeks over such a dispute.
The move came after the U.S. Health Resources and Services Administration last week threatened to issue sanctions against Sanofi if it proceeded with plans to issue credits to hospitals covered by the 340B Drug Discount Program for medicines ordered at full price from a wholesaler. The company informed hospitals and clinics its new payment procedure would begin on Jan. 6.
In its lawsuit, Sanofi argued that the program is rife with waste and abuse. The program was created three decades ago to help hospitals and clinics care for low-income and rural patients. Drug companies that want to take part in Medicare or Medicaid must offer their medicines at a discount — typically, 25% to 50%, but sometimes higher — to participating hospitals and clinics.
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