Genentech Sues HHS Over Clinic Eligibility in Drug Discount Plan

Genentech Inc. is seeking to challenge a federal health agency’s decision to allow certain clinics in Nevada that treat sexually transmitted diseases to participate in a drug discount program.

The complaint against the US Department of Health and Human Services, filed Jan. 31 in the US District Court for the District of Columbia, alleges that 11 health providers affiliated with Sagebrush Health Services in Nevada are ineligible to participate in the 340B Drug Pricing Program.

The federal program allows covered entities such as qualifying safety-net hospitals, clinics, and other providers to buy outpatient drugs at steeply discounted prices from manufacturers ...