Setback for pharma cos over 340B rebate models

19 May 2025

A US district court judge has found that the Department of Health and Human Services (HHS) must preapprove the use of 340B rebate models before they can be implemented.

The ruling was issued last week in a case heard at the court for the District of Columbia, which was brought by a number of pharma companies including Eli Lilly (NYSE: LLY), Bristol Myers Squibb (NYSE: BMY), Sanofi (Euronext: SAN) and Novartis (NOV: VX).

These companies hope to see a rebate model introduced under 340B rather than offering an upfront discount on medicines.

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