Novartis (NVS) has filed a lawsuit accusing the Biden administration of unlawfully preventing the company from changing payment terms to some hospitals that participate in the 340B Drug Discount Program. In its lawsuit, the company argued the U.S. Health Resources and Services Administration wrongfully interpreted a federal law concerning the use of rebates in the program. Novartis sells the Entresto heart drug, which was selected by Medicare for price negotiations. The agency wants manufacturers to ensure the 340B discount and maximum fair price under the Inflation Reduction Act are not applied to the same drug.
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