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2 April, 2026 |
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Lawsuits over the federal 340B program have been heating up for some time. In particular, I’ve been paying attention to cases that pit states and drugmakers against each other over how discounted drugs are dispensed. It’s a saga that’s been unfolding for several years, with billions of dollars on the line. In three cases, pharma appears to have a new ally: the federal government.
The DOJ has taken the position that states have “no role” in determining drugmakers' obligations. It’s an unexpected twist in litigation that's far from over. After a separate court decision this week in favor of pharma, the issue is more likely to pique the Supreme Court's interest. You can read more about it here in my latest story, and feel free to reach out with any tips on what you think the next chapter holds. |
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Nicole DeFeudis |
Editor, Endpoints News
@Nicole_DeFeudis
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by Nicole DeFeudis
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Pharma is gaining ground in a yearslong struggle over access to federal drug discounts. Drugmakers and the federal government have historically
been on opposing sides of contract pharmacy policy under 340B. But in a handful of cases against state laws, they’ve become unexpected allies. For the first time, the agency charged with overseeing the 340B program has decided to weigh in on litigation over state laws that regulate how pharma companies dispense discounted drugs. The Department of Justice, on behalf of HHS, sided with AbbVie and a leading trade group when it wrote in favor of temporary blocks on such laws in Colorado, Maine and Rhode Island. DOJ attorneys wrote in amicus briefs filed in February and March that states should not have the authority to enforce 340B. | |
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A scientist at Aspect Biosystems' labs in Vancouver (courtesy of Aspect Biosystems) |
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by Ryan Cross
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An ambitious Vancouver startup is trying to ensure the next big diabetes breakthrough retains its ties to Canada, unlike the insulin developers of a century ago. That startup, Aspect Biosystems, has received $79 million from the Canadian government to pursue its stem cell-derived therapy that enables patients to produce their
own insulin. The government money comes from the Strategic Response Fund, which aims to help Canadian industries recover from the Trump administration’s tariffs and supports research in areas including biomanufacturing and artificial intelligence. “This government deal allows us to have the capabilities to go the distance, which is very different than 100 years ago when insulin left Canada and created Novo Nordisk,” Aspect CEO and cofounder Tamer Mohamed told
Endpoints News in an interview. | |
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President Donald Trump with Novo Nordisk CEO Maziar Mike Doustdar (center left) and Eli Lilly CEO David Ricks (center right) at the Oval Office (Andrew Caballero-Reynolds/AFP via Getty Images) |
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by Anna Brown
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President Donald Trump is reportedly set to unveil 100% pharmaceutical tariffs as soon as Thursday, but according to a draft seen by Endpoints News, it appears they would only affect a small portion of drugmakers. The draft document lays out how Trump is planning to implement the tariffs on the pharma industry and how drugmakers
with “most favored nation” deals with the White House will be exempt until 2029. While the White House did not immediately respond to questions from Endpoints, Bloomberg News reported some details of the plan Wednesday, including that they could be announced as soon as today. The draft document could still be subject to change before the administration officially announces
it. | |
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by Elizabeth Cairns
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A day after Eli Lilly gained FDA approval for its obesity pill Foundayo, Novo Nordisk is fighting back with an analysis that it says shows the superiority of its own oral drug. The Danish drugmaker's claims — it says its Wegovy pill produces roughly 3% greater weight loss than Foundayo — preview what's certain to be a long-running competition between the companies as they make scientific claims and compete on price. For now, Novo wouldn't confirm or deny whether it intends to run a head-to-head study of the two pills — the gold standard for any claim of superiority. What Novo has done is crunched numbers from the main Phase 3 trials of the two products — Lilly's ATTAIN-1 study of Foundayo and its own OASIS 4 trial of the Wegovy pill. | |
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