Novartis sues US health agency over drug rebate model

20 January 2025

Swiss pharma giant Novartis (NOVN: VX) has filed a lawsuit against the US Department of Health and Human Services (HHS) over a proposed cash rebate model.

The model relates to the 340B program, which mandates that drug manufacturers provide discounted medicines to covered entities such as hospitals and clinics that treat vulnerable populations.

The HHS opted to block a plan which would have seen health providers paying the full price for drugs upfront, followed by a rebate.

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