Eli Lilly Beats Agency’s Attempt to Enforce Drug Discount Policy

Eli Lilly & Co. beat HRSA’s threat to penalize the drugmaker for not complying with an advisory opinion mandating steep discounts for pharmacies that serve low-income Americans because the agency didn’t explain a change of heart regarding its enforcement authority, a federal trial court said.

The Health Resources and Services Administration acted arbitrarily and capriciously in violation of the Administrative Procedure Act when it issued a December 2020 advisory opinion and a May 17 letter regarding the drugmaker’s alleged refusal to meet its obligations under the federal 340B drug discount program, the U.S. District Court for the Southern District of ...