Sanofi Sues HHS Over Rejection of Drug Discount Rebate Model

Sanofi SA is challenging a federal health agency’s rejection of its newly announced model that would allow it to discount drugs through a rebate under the 340B Drug Pricing Program.

The company filed a lawsuit Monday in the US District Court for the District of Columbia alleging the US Health Resources and Services Administration acted unlawfully when it denied Sanofi’s 340B Credit Model—a system that would change the way health providers under the 340B Drug Pricing Program purchase drugs.

Manufacturers under the federal 340B program are required to discount drugs for covered entities, which are qualifying hospitals, clinics, and ...