Drugmakers Must Give Discounts to Contracting Pharmacies: HHS

Drugmakers must pass on federal discounts to pharmacies that contract with low-income hospitals and health centers, the Department of Health and Human Services said Wednesday.

The advisory opinion by the HHS’s Office of the General Counsel comes after drugmakers, including Eli Lilly and Co. and AstraZeneca PLC, started limiting which health centers can access product discounts under the 340B drug pricing program—a move that prompted litigation over a gray area within the program.

Under the program, drug manufacturers have to offer substantial discounts to safety net hospitals, community health centers, and other institutions that serve vulnerable populations. But the drug ...