Drug Discount Rule Breakers Can Face Penalties, HHS Tells Court

The Department of Health and Human Services should be allowed to penalize drugmakers who violate the rules of a federal program designed to help low-income Americans afford drugs, the HHS told the Third Circuit.

The agency is appealing a lower court decision that partially vacated enforcement letters it sent to Novo Nordisk Pharma Inc. and Sanofi-Aventis U.S. LLC threatening monetary penalties if the companies don’t lift limits on discounts provided to pharmacies contracting with health providers in the 340B program.

“Having correctly concluded that the statute prohibits plaintiffs’ policies, the court should have entered final judgment for the federal government,” ...