Biotech Values

[DewDiligence]

Another “Chevron” lawsuit—>JNJ sues HSS re 340B program:

https://www.wsj.com/health/healthcare/j-j-sues-u-s-over-hospital-drug-discounting-program-2b836dc3

Drugmakers typically provide 340B discounts at the time of purchase. In August, J&J proposed changing the timing of the discounts by requiring that hospitals pay full price upfront, and then apply for rebates of some of that money by submitting claims data to verify appropriate use of the drugs.

J&J’s lawsuit alleges that the efforts of the Health Resources and Services Administration, the HHS agency that oversees the 340B program, to block the rebate plan are at odds with the 340B law, and that HRSA’s rejection is based on an incorrect interpretation of the 340B law.

JNJ would seem to have a strong case, although this suit would never have been filed prior to the Supreme Court’s reversal of the Chevron doctrine.