Eli Lilly and Company et al. v. Department of Health and Human Services et al.

Why this Matters:

The plaintiffs argue that certain agency enforcement and regulatory actions requiring drug manufacturers to offer discounted prescription drugs to contract pharmacies under the 340B Drug Pricing Program violate the Administrative Procedure Act, and the Takings Clause of the Fifth Amendment. The plaintiffs further argue that the Alternative Dispute Resolution rule promulgated under the program violates the Appointments Clause and  Article III of the Constitution. The growth of the 340B program and practices by certain providers and contract pharmacies have raised concerns about oversight and abuse of the program—to the tune of billions of dollars.

Potential Impact:

Requiring drug manufacturers to offer discounted prescription drugs to certain contract pharmacies under the 340B Drug Pricing Program would remove one avenue to combatting potential abuse of the program.